Mortgage applications drop despite low loan rates

The refinance share of mortgage activity decreased to 79.1 percent of total applications from 79.7 percent the previous week. 

In August, among those refinancing, 50.7 percent of applications were for fixed-rate 30-year loans, 31 percent for 15-year fixed loans and 7.1 percent for adjustable-rate mortgages. 

The 15-year refinance share is at its highest point since the survey was re-benchmarked in January. 

Of applications for home purchases, 90.1 percent were for fixed-rate 30-year loans, 7.7 percent for 15-year fixed loans and 6.6 percent for ARMs. This is the lowest ARM share for purchases since January, according to the MBA.

The average rate for 30-year fixed-rate mortgages with loan balances of $417,500 or less decreased to 4.18 percent from 4.24.

The average interest rate for 30-year fixed-rate mortgages with jumbo loan balances, greater than $417,500, decreased to 4.49 percent from 4.53.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA was down to 4.05 percent from 4.06, while the rate for 15-year fixed-rate mortgages was up slightly, to 3.49 percent from 3.46 percent.