Applications to refinance an existing mortgage continue to dominate the residential finance landscape, accounting for almost 83% of all new business, according to figures compiled by the Mortgage Bankers Association.
For the week ending August 27, purchase money loans accounted for just 17.1% of new applications, the lowest reading since May 2009.
"Refinancing activity picked up again last week, reaching new 15-month highs, as borrowers took advantage of even lower mortgage rates," said Michael Fratantoni, MBA's vice president of research and economics.
The MBA executive noted that, "the continued low level of purchase applications indicates we are unlikely to see an increase in new home sales reported for August or existing home sales reported for September."
MBA measures loan application activity through a market composite index. The trade group said the average contract rate on a 30-year fixed-rate loan was 4.43% last week.
MBA says its survey covers more than 50% of all retail applications.
