WASHINGTON, D.C. (August 17, 2016) - Mortgage applications decreased 4.0% from one week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending August 12, 2016.

The Market Composite Index, a measure of mortgage loan application volume, decreased 4.0% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 5% compared with the previous week. The Refinance Index decreased 4% from the previous week. The seasonally adjusted Purchase Index decreased 4% from one week earlier to the lowest level since February 2016, but remained 10% higher than the same week last year. The unadjusted Purchase Index decreased 5% compared with the previous week.

The refinance share of mortgage activity increased to 62.6% of total applications from 62.4% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 4.6% of total applications.

The FHA share of total applications decreased to 9.6% from 10.0% the week prior. The VA share of total applications increased to 13.2% from 13.0% the week prior. The USDA share of total applications remained unchanged at 0.6% from the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 3.64% from 3.65%, with points decreasing to 0.31 from 0.34 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to 3.60% from 3.64%, with points decreasing to 0.28 from 0.31 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.49% from 3.52%, with points decreasing to 0.28 from 0.33 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 2.90% from 2.93%, with points decreasing to 0.32 from 0.34 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.

The average contract interest rate for 5/1 ARMs increased to 2.85% from 2.81%, with points decreasing to 0.17 from 0.32 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.