Mortgage applications decreased 7.4 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Aug. 17, 2012. The Market Composite Index, a measure of mortgage loan application volume, decreased 7.4 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased eight percent compared with the previous week. The Refinance Index decreased nine percent from the previous week to the lowest level since early July. The seasonally adjusted Purchase Index increased 0.9 percent from one week earlier. The unadjusted Purchase Index decreased 0.9 percent compared with the previous week and was 3.0 percent higher than the same week one year ago.
The refinance share of mortgage activity decreased to 80.0 percent of total applications from 81.0 percent the previous week. The Home Affordable Refinance Program (HARP) share of refinance activity was unchanged from last week at 24 percent. The adjustable-rate mortgage (ARM) share of activity increased to four percent of total applications.
During the month of July, the investor share of applications for home purchase was at 5.7 percent, a slight increase from 5.5 percent in June. This change was led by an 8.7 percent gain in the Pacific region. In addition, the share of purchase mortgages for second homes increased to 5.8 percent in July from 5.6 percent in June.