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MBA US Mortgage Applications Fall Slightly in Week Ended Aug. 14, Mortgage Rates Hold Steady

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Mortgage applications fell by 0.4% in the week ended Aug. 14, with an increase in refinancing activity offset by a decline in home purchase applications, according to Mortgage Bankers Association data released Wednesday.

This follows a 3.6% increase in overall activity in the week ended Aug. 7.

Applications for refinancing loans rose by 2%, though there was still some resistance from buyers with more expensive homes, lowering the average refinancing size to a one-year low of $282,200, according to Joel Kan, MBA's vice president and deputy chief economist.

New purchase applications fell by a seasonally adjusted 2%.

"Purchase applications decreased and were also lower than last year's pace," Kan said. "In addition to the economic uncertainty, affordability difficulties have reemerged as a reason for homebuyers to delay purchase decisions given the impact of higher mortgage rates on monthly mortgage payments."

The average contract interest rate for 30-year fixed mortgages with loan balances of $832,750 or less remained at 6.77%.

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