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.
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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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