Mortgage applications during the week ended October 23 decreased 3.5 percent on a seasonally adjusted basis from the previous week the Mortgage Bankers Association said today.  Its Market Composite Index for the week increased 7 percent on an unadjusted basis.  Data for the week was adjusted to account for the Columbus Day holiday.

The Refinance Index decreased 4 percent from the week ended October 16 while the refinance share of applications remained the same as the previous week, 59.4 percent. The seasonally adjusted Purchase Index decreased 3 percent from one week earlier while the unadjusted Purchase Index increased 7 percent week-over-week and was 23 percent higher than the same week in 2014.

Refinance Index vs 30 Yr Fixed

Purchase Index vs 30 Yr Fixed

Applications for government backed mortgages backed off slightly from the elevated levels noted by MBA in their commentary last week.  The FHA share decreased to 13.7 percent from 14.3 percent and the VA share of total applications dipped from 12.7 to 12.3 percent.  The USDA share was 0.7 percent, up from 0.6 percent the week before.

The average contract interest rate for 30-year fixed-rate mortgages (FRM) with conforming loan balances ($417,000 or less) increased to 3.98 percent from 3.95 percent.  Points increased to 0.44 from 0.43 and the effective rate increased.

The rate for 30-year FRM jumbo loan balances (greater than $417,000) increased to an average of 3.88 percent with 0.33 point.  The previous week the rate had been 3.87 percent with 0.29 point. The effective rate rose from the previous week.

FHA-backed 30-year FRM had an average rate of 3.80 percent, up from 3.78 percent.  Points decreased to 0.30 from 0.39, lowering the effective rate

Fifteen-year FRM had an average rate of 322 percent with 0.44 point compared to 3.20 percent with 0.34 point a week earlier.  The effective rate also rose.

The average contract interest rate for 5/1 adjustable rate mortgages (ARMs) increased to 3.03 percent from 2.94 percent, with points decreasing to 0.34 from 0.35 and the effective rate increased.  The ARM share of activity decreased to 6.6 percent of total applications from 6.9 percent a week earlier.

 MBA's Weekly Mortgage Applications Survey, which has been conducted since 1990, 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 and interest rate quotes are premised on loans with an 80 percent loan-to-value ratio and points that include the origination fee.