Mortgage applications dropped 7% from the previous week, according to the Mortgage Bankers Association's Weekly Mortgage Applications Survey for the period ending Sept. 11. The figures were adjusted to account for the Labor Day holiday.
On an unadjusted basis, the survey's market composite reported that the volume of mortgage loan applications fell 17%. The refinance index alone dipped by 9%, while the purchase index contracted by 4%.
By share of overall mortgage activity,
Meanwhile, the FHA share rose over the prior week as it jumped to 14.2% from 13.4%. The USDA share remained the same as the prior week at 0.8%.
Mortgage rates were a mixed bag for the week, with some rising and others declining.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) dropped to 4.09% from 4.1%. The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances though edged up 1 basis point to 4.04%.
Another increase was seen for the 5/1 ARMs, which had an average contract rate rise to 3.04% from 3.03%.
The average contract interest rates for 30-year fixed-rate mortgages backed by the FHA and 15-year fixed-rate mortgages decreased by 2 basis points and 1 basis point, to 3.88% and 3.33%, respectively.
