Mortgage applications dropped 9.7% from one week earlier amid the Labor Day holiday, according to the latest data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending Sept. 15.
The MBA noted that the results included an adjustment due to the Labor Day holiday.
Broken up, the Refinance Index decreased 9% from the previous week, as the seasonally adjusted Purchase Index decreased 11% from one week earlier.
Following recent trends, the refinance share of mortgage activity increased above half of all applications, making up 52.1% of total applications, up from 51% the previous week. The adjustable-rate mortgage share of activity increased to 6.8% of total applications.
Both the Federal Housing Administration’s share of total applications and the Department of Agriculture’s share of total applications remained frozen, staying unchanged at 9.9% and .07%, respectively, from the week prior.
The Department of Veterans Affairs’ share of total applications decreased to 10.1% from 10.3% the week prior.
Moving on to rates, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) increased to 4.04% from 4.03%.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100) decreased to 3.99% from 4.00%.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 3.97% from 3.94%, while the average contract interest rate for 15-year fixed-rate mortgages increased to 3.35% from 3.30%.
Lastly, the average contract interest rate for 5/1 ARMs increased to 3.30% from 3.17%.