Highlights
The mortgage bankers' purchase index fell 5.0 percent in the Aug. 17 week to 441.5. But the accompanying text, in a second straight week, warned not to read too much in the results: "Given the current turmoil in the mortgage market, week-to-week changes in the purchase applications index should be treated with a certain degree of caution." The report said gains in prior weeks likely reflected the sudden exit of a major originator that forced borrowers to reapply at other firms. "The drop in applications we see here may be an indication that those borrowers have now been taken care of."

Other data in the report showed a 6.4 percent dip in refinancing applications to 1,806.3, and a 4 basis point rise in average 30-year fixed mortgages to 6.49 percent. Next housing data will be new home sales on Friday morning.