- Mortgage applications increased only 0.1 percent from last week.
- FHA and USDA applications both decreased, but VA applications saw a slight increase.
- Mortgage applications for existing homes have been somewhat flat for about two months, according to MBA’s weekly surveys.
Could the hot summer selling season be winding down? According to the Mortgage Bankers Association’s (MBA) latest Weekly Mortgage Applications Survey, mortgage applications increased only 0.1 percent from the previous week.
For the week ending Aug. 7, on an adjusted basis, mortgage applications decreased 1 percent from the previous week, MBA said. FHA and USDA applications both decreased, but VA applications saw a slight increase.
In its previous survey for the week ending July 31, MBA said applications actually increased 4.7 percent from the week prior. Aside from that sudden spike, mortgage applications for existing homes have been somewhat flat for about two months, according to MBA’s weekly surveys.
That could be attributed to several factors. Many families may be focusing on starting a new school year and putting their homebuying plans off until next spring. Many potential borrowers are eyeing an expected interest rate increase by the Federal Reserve.
And many analysts have been documenting how inventory problems resulting from the strong seller’s market could be shutting some buyers out of the market.
The Aug. 7 survey also found that the seasonally adjusted Purchase Index decreased 4 percent from one week earlier but was still 20 percent higher than the same week one year ago — so while this year’s progress may be slowing down, the housing market is still faring a lot better than it was at this time last year.
There also wasn’t much movement in interest rates, MBA said:
- The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) remained unchanged at 4.13 percent.
- Rates for jumbo loans remained unchanged at 4.08 percent.
- 30-year fixed-rate mortgages backed by the FHA decreased to 3.94 percent from 3.96 percent.
- 15-year fixed-rate mortgages increased to 3.39 percent from 3.36 percent.
- Finally, the average contract interest rate for 5/1 adjustable-rate mortgages (ARMs) increased to 3.11 percent from 3.02 percent.
However, refinance applications are faring much better, MBA said. The Refinance Index increased 3 percent from the previous week to its highest level since May 2015. The ARM share of activity remained unchanged at 6.8 percent of total applications.