Mortgage application activity decreased from one week earlier due to normal seasonal trends, according to the Mortgage Bankers Association.
The MBA's Weekly Mortgage Applications Survey for the week ending Sept. 15 found the market composite index decreased 9.7% on a seasonally adjusted basis, but on an unadjusted basis it increased 12% compared with the previous week.
Loan origination volume typically lags in the first and fourth quarters of the year.
The refinance index decreased 9% from the previous week. Last week's results included an adjustment for the Labor Day holiday.
The refinance application share increased to 52.1% from 51% the previous week. In its latest origination forecast, the MBA upped its fourth-quarter refi outlook to $130 billion from $107 billion but cut its expectations for purchase originations by $1 billion to $240 billion.
The seasonally adjusted purchase index decreased 11% from one week earlier, while the unadjusted purchase index increased 10% compared with the previous week and was 2% higher than the same week one year ago.
Adjustable-rate loan application activity increased to 6.8% from 6.7%, while the share of applications for Federal Housing Administration-guaranteed loans remained unchanged at 9.9%.
The share of applications for Veterans Affairs-guaranteed loans decreased to 10.1% from 10.3% and the U.S. Department of Agriculture/Rural Development share remained unchanged at 0.7%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) increased 1 basis point to 4.04%. For 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100), the average contract rate decreased 1 basis point to 3.99%.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased 3 basis points to 3.97%, while for 15-year fixed-rate mortgages the average increased 5 basis points to 3.35%.
The average contract interest rate for 5/1 ARMs increased to 3.3% from 3.17%.