Mortgage applications decreased 12 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Oct. 19, 2012. The Market Composite Index, a measure of mortgage loan application volume, decreased 12 percent on a seasonally adjusted basis from one week earlier, but that week included an upward adjustment for the Columbus Day holiday. On an unadjusted basis, the Index decreased two percent compared with the previous week. The Refinance Index decreased 13 percent from the previous week to the lowest level since late August. The seasonally adjusted Purchase Index decreased eight percent from one week earlier. The unadjusted Purchase Index increased two percent compared with the previous week and was seven percent higher than the same week one year ago.
The refinance share of mortgage activity decreased to 81 percent of total applications from 82 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to four percent of total applications.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) increased to 3.63 percent from 3.57 percent, with points increasing to 0.45 from 0.44 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate increased from last week. The 30-year fixed rate increased for three consecutive weeks to the highest level since late September.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) increased to 3.85 percent from 3.81 percent, with points remaining unchanged at 0.42 (including the origination fee) for 80 percent LTVs. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 3.41 percent from 3.34 percent, with points decreasing to 0.61 from 0.82 (including the origination fee) for 80 percent LTVs. The effective rate increased from last week.
The average contract interest rate for 15-year fixed-rate mortgages increased to 2.96 percent from 2.87 percent, with points decreasing to 0.36 from 0.39 (including the origination fee) for 80 percent LTVs. The effective rate increased from last week.
The average contract interest rate for 5/1 ARMs increased to 2.72 percent from 2.59 percent, with points decreasing to 0.33 from 0.35 (including the origination fee) for 80 percent LTVs. The effective rate increased from last week.
