Mortgage application volume soared 11.1% in the week ended Sept. 7, after an upward adjustment for the Labor Day holiday, according to the Mortgage Bankers Association's (MBA) weekly mortgage applications survey.
While the market composite index jumped 11.1%, seasonally adjusted, without the adjustment, the index slumped 12%. Refinances grew 12% on an adjusted basis, and the purchase index jumped 8%, seasonally adjusted (off 15% without the adjustment).
"The holiday adjusted numbers may overstate the level of refinance applications because some lenders who rely primarily on the Internet/consumer direct channel for originations saw little if any decline in applications for Labor Day as compared with the drops for lenders relying on retail offices, perhaps because borrowers had additional time over the Labor Day weekend to complete online refinance applications," MBA said in a statement.
Refinances grew to 80% of total applications from 79%, while adjustable-rate mortgages decreased to 4.5% of the market.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) decreased to 3.75% from 3.78%.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.07% from 3.10%.