Purchase mortgage apps climb 1.7%: MBA

August 27, 2015

WASHINGTON (8/27/15)--Driven by purchase activity, mortgage applications rose 0.2% for the week that ended Aug. 21, according to the Mortgage Bankers Association’s weekly mortgage application survey, released Wednesday.

Purchase applications jumped 1.7% after a 1.1% drop the prior week, while refinancing activity--which now makes up 55.3% of all applications--fell by 1% after a 7.2% surge the previous week ( Aug. 26).

“Housing data released over the past several weeks have pointed to further improvement in the housing market,” said Michael Ferlez, Moody’s analyst ( “New single-family home sales rose by 5.4% in July to a seasonally adjusted rate of 507,000. As the inventory of existing homes tightens, house prices will rise, which will ignite more homebuilding.”

The contract rate for 30-year fixed-rate mortgages slipped to 4.08% during the week, a 9-basis point drop on a monthly basis and a 20-basis point drop on a yearly basis.

For jumbo mortgages, the 30-year rate fell to 4%.

“Financial turmoil in China weighed on mortgage rates, with the rate for a 30-year fixed-rate mortgage rate falling to its lowest level since May,” Ferlez said. “Rising global uncertainty has led to a steady decline in the 30-year fixed rate since the end of June.”

The five-year adjustable-rate mortgage rate dropped by 2 basis points to 2.96% for the week, a mark that falls 14 basis points below levels seen a year ago at this time.