The Mortgage Bankers Association (MBA) released its report on mortgage applications Wednesday morning, noting a week-over-week increase of 11.8% in the group’s seasonally adjusted composite index for the week ending October 16. That followed a decrease of 27.6% for the week ending October 9. Mortgage loan rate changes mostly decreased last week, with just one remaining unchanged and the others falling.

On an unadjusted basis, the composite index increased by 1% week over week. The seasonally adjusted purchase index rose by 16%, compared with the week ended October 9. The unadjusted purchase index increased by 5% for the week and is now 9% higher year over year.

The MBA’s refinance index increased by 9% week over week, and the percentage of all new applications that were seeking refinancing fell from 61.2% to 59.5%.

Adjustable rate mortgage loans accounted for 6.9% of all applications, down from 7.5% the prior week.

The MBA’s chief economist said:

On an adjusted basis, application volume increased last week, led by a sharp rebound in government volume. We expect that application volume will remain volatile over the next few weeks as the industry continues to implement TILA-RESPA integrated disclosures.

According to the MBA, last week’s average mortgage loan rate for a conforming 30-year fixed-rate mortgage fell from 3.99% to 3.95%, the lowest level since May. The rate for a jumbo 30-year fixed-rate mortgage fell from 3.89% to 3.87%. The average interest rate for a 15-year fixed-rate mortgage remained unchanged at 3.2%.

The contract interest rate for a 5/1 adjustable rate mortgage loan slipped from 3.00% to 2.94%. Rates on a 30-year FHA-backed fixed-rate loan dropped from 3.82% to 3.78, the lowest level since April.

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