Mortgage applications fell 2.5% in the week ended Aug. 31, as refinances fell 3% and purchases were off 0.8%, according to data from the Mortgage Bankers Association's Weekly Mortgage Applications Survey.

Refinances accounted for 79% of the market, unchanged from the week before, while adjustable-rate mortgages grew to 5% of applications.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) decreased to 3.78% from 3.80%, while 15-year fixed-rate mortgages slid to 3.10% from 3.12%.

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