US Mortgage Applications, Refinancing Drop

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The number of mortgage applications in the U.S. decreased 13.5 percent from a week earlier, according to data released today by the Mortgage Bankers Association. 

The decrease includes an adjustment for the Labor Day holiday and comes after a 1.3 percent increase the week before. 

The group's refinance index has also fluctuated during the last couple of weeks. The group reported a 20 percent decrease from last week and is now at its lowest level since June 2009. It has fallen 71 percent since its recent peak last May. 

The refinance share of mortgage activity is at its lowest level since April 2010 after decreasing to 57 percent from 61 percent last week.

The average interest rate for 30-year fixed-rate mortgages with conforming loan balances increased to 4.80 percent from 4.73 percent last week. Last week, Freddie Mac also reported an increase in mortgage rates. 

More from the agency:

• The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) increased to 4.84 percent from 4.71 percent, with points increasing to 0.41 from 0.25 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

• The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 4.56 percent from 4.48 percent,with points increasing to 0.28 from 0.03 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

• The average contract interest rate for 15-year fixed-rate mortgages increased to 3.83 percent from 3.75 percent, with points increasing to 0.42 from 0.30 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

• The average contract interest rate for 5/1 ARMs increased to 3.59 percent from 3.49 percent,with points increasing to 0.43 from 0.37 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.