Home loan application volume slipped 2.2 percent on a seasonally adjusted basis (3.1 percent unadjusted) during the week ending August 28, according to the latest survey from the Mortgage Bankers Association.
Despite the week-to-week fall, mortgage apps were still 22.7 percent higher compared to a year earlier.
The weekly decline was led by a 3.1 percent drop in refinance activity and a 1.0 percent dip in purchase mortgage applications.
However, the government purchase index increased 0.5 percent on a seasonally adjusted basis from one week earlier, marking its seventh consecutive weekly gain.
“For the month of August, the government-insured share of purchase applications was 40.4 percent, up from 38.3 percent in July and 31.7 percent in August 2008,” the MBA said in a release.
That was the highest share for such mortgages (largely FHA loans) since February 1991.
The 30-year fixed slipped to 5.15 percent from 5.24 percent, while the 15-year fixed dipped a single basis point to 4.57 percent.
The one-year adjustable-rate mortgage fell to 6.71 percent from 6.74 percent, but the ARM-share of activity decreased to 5.6 percent from 6.5 percent of total applications from the previous week.
The MBA’s weekly survey covers roughly half of retail, residential mortgage applications, including multiple and declined apps.