The Mortgage Bankers Association released its weekly report on mortgage applications this morning, noting a 4.3% decline in the group’s composite index compared with last week’s total. Applications for refinancing fell 6% (seasonally adjusted), while purchase applications increased by about 1% from the previous week. Unadjusted, the purchase index dropped 1% compared with the same week a year ago.
Refinancings now account for 79% of total applications, down from 80% a week ago. About 96% of the applications were seeking fixed-rate loans.
The average contract interest rate for a conforming 30-year fixed-rate mortgage fell slightly from 3.86% to 3.80%. The rate for a jumbo 30-year fixed-rate mortgage also fell, from 4.11% to 4.06%. The average interest rate for a 15-year fixed-rate mortgage decreased from 3.15% to 3.12%.
The contract interest rate for a 5/1 adjustable rate mortgage also declined, from 2.74% to 2.68%.
Recent data on the housing market indicates that home sales prices are rising and banks are loosening lending requirements, making home purchases a little more attractive. The refinancing index is at its lowest point since mid-May of this year.
Mortgage rates have come down to about where they were two weeks ago.