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Mortgage applications rise as rates ease

MBA data show total mortgage application volume climbed 3.6% for the week ending August 7, and refinance activity increased 5% while rates moved lower.

Reported · Written up by our desk · Mortgages

Mortgage application activity rebounded last week after mortgage rates declined moderately, offering some relief for both homebuyers and people considering refinancing, according to Mortgage News Daily citing Mortgage Bankers Association data.

For the week ending August 7, total application volume increased 3.6% on a seasonally adjusted basis. Purchase applications rose 3% from the prior week, but they were still 1% lower than the same week a year ago.

Refinance activity improved as the Refinance Index increased 5% week over week, though refinance applications remained 22% below year-ago levels. The refinance share of total mortgage activity rose to 40.7% from 39.9%, while the adjustable-rate mortgage share held at 7.9%.

Mortgage rates also fell, with the average contract rate for a 30-year fixed mortgage dropping to 6.77% from 6.81% and jumbo 30-year loans easing to 6.68% from 6.72%. The 15-year fixed rate declined to 6.10% from 6.13%, and the 5/1 ARM rate fell to 5.99% from 6.03%.

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