Mortgage applications increased slightly last week

Mortgage application volume crept up last week as an increase in refinancing outpaced a drop off in purchases. 

Home loan applications were up 0.6 percent for the week ended Sept. 16, as the refinance index increased 2.2 percent and purchases slipped 4.7 percent, according to weekly data from the Mortgage Bankers Association released Wednesday. 

The four-week moving average, a less volatile measure, is down 3.15 percent.  

The refinance share of mortgage activity increased to 78.3 percent of total applications from 76.8 percent the previous week, a sign that more homeowners are able to take advantage of record-low loan rates. 

During August, the investor share of applications for home purchases was 5.7 percent, a slight increase from 5.5 percent in July. The share of purchase mortgages for second homes increased to 6 percent in August from 5.9 percent in July.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) remained unchanged at 4.29 percent.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances ( greater than $417,500) decreased to 4.55 percent from 4.57 percent.

The rate for 30-year fixed-rate mortgages backed by the FHA decreased to 4.07 percent from 4.08 percent.

The average for a 15-year fixed-rate mortgages decreased to 3.46 percent from 3.52 percent.