Applications for refinancing declined for the fourth straight week according to information from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey. This dampened overall application numbers despite a slight uptick in home purchase business. MBA's Market Composite Index, a measure of application volume decreased 4.8 percent on a seasonally adjusted basis during the week ended October 26 and 5 percent on an unadjusted basis from the previous week. 

MBA's Refinance Index decreased 6 percent from the previous week to the lowest level since the end of August and the refinancing portion of mortgage applications decreased to 80 percent from 81 percent during the week ended October 19.  The seasonally adjusted Purchase Index increased 1 percent from one week earlier but the unadjusted Purchase Index declined 0.3 percent compared with the previous week and was 6 percent higher than the same week one year ago.

Purchase Index vs 30 Yr Fixed

Refinance Index vs 30 Yr Fixed

Mortgage rates were mixed.  The average contract interest rate for 30-year fixed-rate mortgages (FRM) with conforming balances under $417,500 rose 2 basis points to 3.65 percent with points decreasing to 0.39 from 0.45.  Rates for 30-year jumbo FRM with balances above $417,500 increased from 3.85 percent with 0.42 points to 3.94 percent with 0.36 points.  Rates for FHA-backed 30-year FRM rates were unchanged at 3.41 percent but points increased to 0.76 from 0.61.  Contract rates were at the highest level since September for all three and their effective rates also increased.

Shorter term rates declined with the contract interest rate for 15-year fixed-rate mortgages down to 2.95 percent from 2.96 percent, with points decreasing to 0.35 from 0.36.  The rate for 5/1 adjustable rate mortgages (ARMs) decreased to 2.66 percent from 2.72 percent, with points remaining unchanged at 0.33.  The effective rate for both loan types decreased.  The ARM share of mortgage applications decreased to 4 percent during the week.

All rate information is for loans with an 80 percent loan-to-value ratio and points included the origination fee.

MBA's weekly survey has been conducted since 1990 and covers over 75 percent of all U.S. retail residential mortgage applications. Respondents include mortgage bankers, commercial banks and thrifts.  Base period and value for all indexes is March 16, 1990=100.