The Mortgage Bankers Association (MBA) released its weekly report on mortgage applications Wednesday morning. It noted a decrease of 0.2% in the group’s seasonally adjusted composite index, following a drop of 4.1% for the previous week. Mortgage loan rates fell on most types of loans for the week ending September 26.

The seasonally adjusted purchase index was unchanged from the prior week’s report. On an unadjusted basis, the composite index decreased by 0.4% week-over-week. The unadjusted purchase index decreased by 1% for the week, and remains 11% lower year-over-year.

Adjustable rate mortgage loans accounted for 7.6% of all applications, down from 8% in the prior week.

The MBA’s refinance index decreased by 0.3%, after declining by 7% in the previous week. The share of refinancings remained unchanged at 56% of all applications.

The average mortgage loan rate for a conforming 30-year fixed-rate mortgage decreased from 4.39% to 4.33%. The rate for a jumbo 30-year fixed-rate mortgage fell from 4.30% to 4.28%. The average interest rate for a 15-year fixed-rate mortgage declined from 3.56% to 3.55%.

The contract interest rate for a 5/1 adjustable rate mortgage loan rose from 3.20% to 3.21%. Rates on a 30-year FHA-backed fixed rate loan dropped from 4.08% to 4.07%.

Home price increases have been slowing down as the housing inventory rises. All-cash sales are dropping as fewer distressed properties come on the market. And because mortgage interest rates remain historically low, first-time buyers are cautiously re-entering the market.

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