Mortgage applications decreased 2.3% from one week ago, according to the Mortgage Bankers Association.
The MBA's Weekly Mortgage Applications Survey for the week ending Aug. 25 found that the refinance index decreased 2% from the previous week.
The seasonally adjusted purchase index decreased 3% from one week earlier, while the unadjusted purchase index decreased 5% compared with the previous week and was 4% higher than the same week one year ago.
The refinance application share increased to 49.4% from 48.7% the previous week.
The market composite index, a measure of mortgage loan application volume, decreased 2.3% on a seasonally adjusted basis, and on an unadjusted basis it decreased 4% compared with the previous week.
Adjustable-rate loan application activity increased to 6.9% from 6.4%, while the share of applications for Federal Housing Administration-guaranteed loans decreased to 9.7% from 10.1% the week prior.
The share of applications for Veterans Affairs-guaranteed loans decreased to 10% from 10.2% and the U.S. Department of Agriculture/Rural Development share decreased to 0.7% from 0.8%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) decreased to its lowest level since November 2016, 4.11%, from 4.12%. For 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100), the average contract rate increased 1 basis point to 4%.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA remained unchanged at 4.02%, while for 15-year fixed-rate mortgages the average decreased to its lowest level since November 2016, 3.36%, from 3.4%.
The average contract interest rate for 5/1 ARMs decreased 1 basis point to 3.26%.