Mortgage applications rose for the first time in six weeks as interest rates held steady, according to the Mortgage Bankers Association.
The MBA's Weekly Mortgage Applications Survey for the week ending Aug. 17 found that the refinance index increased 6%
"Treasury rates dropped last week, as continuing worries over Turkey's currency and ongoing trade tensions spurred a flight to quality by global investors," Joel Kan, the MBA's associate vice president of economic and industry forecasting, said in a press release. "After several weeks of declining application activity, both purchase and refinance applications increased last week."
Kan said despite the increase in purchase applications, they remained below their 2018 average "due to persistent problems of affordability and low inventory."
The seasonally adjusted purchase index increased 3% from one week earlier, while the unadjusted purchase index increased 1% compared with the previous week and was 1% higher than the same week one year ago.
Adjustable-rate loan activity increased to 6.5% from 6.2% of total applications, while the share of Federal Housing Administration-guaranteed loans decreased to 10.2% from 10.4% the week prior.
The share of applications for Veterans Affairs-guaranteed loans decreased to 10.5% from 10.6% and the U.S. Department of Agriculture/Rural Development share decreased to 0.7% from 0.8% the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) remained unchanged from 4.81%. For 30-year fixed-rate mortgages with jumbo loan balances (greater than $453,100), the average contract rate decreased 5 basis points to 4.68%.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased 5 basis points to 4.82%. For 15-year fixed-rate mortgages the average decreased 2 basis points to 4.25%.
The average contract interest rate for 5/1 ARMs decreased 6 basis points to 4%.
