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