Mortgage applications continue to slide
According to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending October 18, 2013, mortgage application volume fell 0.6 percent from the week prior, which does not include an adjustment for the Columbus Day holiday.
The Market Composite Index, a measure of mortgage loan application volume, decreased 0.6 percent on a seasonally adjusted basis from one week earlier, falling 1.0 percent on an unadjusted basis while the Refinance Index fell 1.0 percent. The seasonally adjusted Purchase Index increased 1.0 percent from one week earlier, down 2.0 percent from the same week one year ago.
After hovering around 80 for most of 2012, the refinance share of mortgage activity has now decreased to 65 percent of total applications from 66 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 7.0 percent of total applications.
Average contract interest rates
According to the MBA:
- The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 4.39 percent, the lowest rate since June 2013, from 4.46 percent, with points increasing to 0.41 from 0.31 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate decreased from last week.
- The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to 4.43 percent, the lowest rate since June 2013, from 4.51 percent, with points increasing to 0.26 from 0.15 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
- The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 4.15 percent from 4.16 percent, with points decreasing to 0.27 from 0.44 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
- The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.51 percent, the lowest rate since June 2013, from 3.53 percent, with points decreasing to 0.30 from 0.31 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
- The average contract interest rate for 5/1 ARMs was unchanged at 3.25 percent, with points decreasing to 0.26 from 0.32 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
