Last week, we reported that refinance activity on fixed-rate mortgages had jumped a marked 3.8 percent during the period ending August 1 - a significant leap considering the lackluster demand within the national housing market of late. However, according to the latest report from the Mortgage Bankers Association (MBA), an industry group that monitors roughly 75 percent of all home loan activity nationwide, the refinance market has now lost all gained ground, with applications dropping 4.0 percent during the week ending August 8.
Purchase applications, however, only dropped roughly 1.0 percent over the same time frame, indicating that buyer activity remains relatively healthy. This isn't surprising given the fact that the latest average interest on 30-year fixed-rate mortgages continues to hover around 4.35 percent, according to the most recent MBA data. These are among the lowest rates seen by buyers in more than a year.