MBA: Rates Rise, Applications Fall, Refis, Too

Mortgage application volume fell 7.4% for the week ending Aug. 17 with loan rates inching up but remaining near historic lows.

According to new figures compiled by the Mortgage Bankers Association, the refi share fell to 80% of all new business, compared to 81% the week prior. The refi share is now at its lowest level since early July.

Home Affordable Refinance Program applications accounted for 24% of all refi applications and continue to be a source of strength for the industry.

The average contract interest rate for a 30-year fixed-rate mortgage with conforming loan balances ($417,500 or less) increased by 10 basis points from the previous week to 3.86%. The average contract interest rate for 30-year FHA-insured loans rose by nine basis points to 3.62%.

The rate for 30-year FRMs with jumbo loan balances rose eight basis points to 4.11%. The average contract interest rate for 15-year FRMs increased three basis points to 3.15%. The rate for the 5/1 ARM was 2.74%, an increase of a single basis point.

The trade group tracks applications through a proprietary index.