U.S. mortgage applications slump as rates rise

Mortgage applications decreased last week as rates increased slightly, according to the Mortgage Bankers Association’s application survey for the week ending Aug. 3. Both refinance and purchase applications decreased last week, by 2 percent and 1 percent, respectively. Refinances continued to comprise 81 percent of the mortgage application market.

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Only rates for 15-year fixed-rate loans, which fell to 3.08 percent from 3.09 percent, decreased last week. Meanwhile, interest rates for 30-year fixed-rate mortgages with conforming loan balances rose to 3.76 percent from 3.75 percent, and similarly termed loans with jumbo balances saw their average interest rates climb to 4.04 percent from 4.01 percent. Finally, 30-year fixed-rate mortgage rates backed by the Federal Housing Administration jumped two-hundredths of a percentage point to 3.54 percent. — Adam Fusfeld