The Mortgage Bankers Association (MBA) released its weekly report on mortgage applications Wednesday morning, noting a week-over-week decrease of 1.2% in the group’s seasonally adjusted composite index for the week ending October 28. Mortgage loan rates rose to multi-month highs on four types of loans over the past week.
On an unadjusted basis, the composite index decreased by 2% week over week. The seasonally adjusted purchase index decreased by 0.4% compared with the week ended October 21. The unadjusted purchase index decreased 2% for the week and is now 9% higher year over year.
The MBA’s refinance index decreased by 2% week over week, and the percentage of all new applications that were seeking refinancing remained unchanged at 62.7%.
Adjustable rate mortgage loans accounted for 4.4% of all applications, up 4.2% from the previous week.
According to Mortgage News Daily, Tuesday’s action in the bond market was directly the result of new documents related to an investigation of the Clinton Foundation:
Although the details and rationale were sketchy, the news logically benefits [Republican presidential nominee Donald J.] Trump to an undetermined extent. Because markets generally associate Trump with greater uncertainty, and because uncertainty motivates bond buying, bonds improved rapidly into the afternoon. Most lenders issued positive reprices, bringing rates back in line with Friday’s rates.
According to the MBA, last week’s average mortgage loan rate for a conforming 30-year fixed-rate mortgage increased from 3.71% to 3.75%. The rate for a jumbo 30-year fixed-rate mortgage rose from 3.71% to 3.74%. The average interest rate for a 15-year fixed-rate mortgage decreased from 3.01% to 3.04%.
The contract interest rate for a 5/1 adjustable rate mortgage loan increased from 2.93% to 2.97%. Rates on a 30-year FHA-backed fixed-rate loan rose from 3.56% to 3.59%.
All rates except the 5/1 ARM are their highest levels since June.