Mortgage applications fell 2.7% from one week earlier, losing any gain it made last week, according to data from the Mortgage Bankers Association’s weekly mortgage applications survey for the week ending Aug. 8, 2014.
The refinance index dipped 4% from last week to the lowest level since May 2014, while the seasonally adjusted purchase index decreased 1% from one week earlier to the lowest level since February 2014.
“While bond pricing was relatively flat and mortgage-backed security prices did little to move interest rates around last week, we did see a slight drop in both refinance and purchase activity. Overall, purchase volume has been unable to reach last year’s levels,” Quicken Loans vice president Bill Banfield said.
As a whole, the refinance share of mortgage activity declined to 54% of total applications from 55% the previous week.
The adjustable-rate mortgage share of activity remained unchanged at 8% of total applications.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances stayed at 4.35%.
In addition, the average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances fell to 4.24% from 4.26%.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA inched down to 4.04% from 4.06%.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.48% from 3.51%, while the average contract interest rate for 5/1 ARMs decreased to 3.24% from 3.32%.