WASHINGTON, D.C. (July 20, 2016) - Mortgage applications decreased 1.3% last week from a week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.

The Market Composite Index, a measure of mortgage loan application volume, decreased 1.3% on a seasonally adjusted basis; on an unadjusted basis, the Index increased 24% compared with the previous week. The Refinance Index decreased 1% from the previous week.

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The seasonally adjusted Purchase Index decreased 2% from one week earlier. The unadjusted Purchase Index increased 23% compared with the previous week and was 16% higher than the same week one year ago. Adjustments were made to the prior week due to the July 4 holiday.

The refinance share of mortgage activity increased to 64.2% of total applications from 64.0% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 5.1% of total applications.

The FHA share of total applications decreased to 9.9% from 10.0% the week prior. The VA share of total applications decreased to 11.2% from 12.1% the week prior. The USDA share of total applications decreased to 0.5% from 0.6% the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to 3.65% from 3.60%, with points unchanged at 0.36 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) increased to 3.66% from 3.61%, with points unchanged at 0.32 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA remained unchanged at 3.53%, with points decreasing to 0.30 from 0.32 (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 increased to 2.90% from 2.88%, with points decreasing to 0.31 from 0.34 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.

The average contract interest rate for 5/1 ARMs increased to 2.86% from 2.78%, with points increasing to 0.29 from 0.25 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.