Mortgage applications decreased 0.6 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Oct. 18, 2013. This week’s results do not include an adjustment for the Columbus Day holiday. The Market Composite Index, a measure of mortgage loan application volume, decreased 0.6 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased one percent compared with the previous week. The Refinance Index decreased one percent from the previous week. The seasonally adjusted Purchase Index increased one percent from one week earlier. The unadjusted Purchase Index also increased one percent compared with the previous week and was two percent lower than the same week one year ago.
The refinance share of mortgage activity decreased to 65 percent of total applications from 66 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to seven percent of total applications.
“With the government shutdown behind us and interest rates remaining steady, look for mortgage activity, especially on the purchase side, to pick back up," said Quicken Loans economist Bill Banfield. "Not to be overlooked, there are still millions of underwater homeowners who could benefit from refinancing through HARP and have yet to do so."
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 4.39 percent, the lowest rate since June 2013, from 4.46 percent, with points increasing to 0.41 from 0.31 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to 4.43 percent, the lowest rate since June 2013, from 4.51 percent, with points increasing to 0.26 from 0.15 (including the origination fee) for 80 percent LTVs. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 4.15 percent from 4.16 percent, with points decreasing to 0.27 from 0.44 (including the origination fee) for 80 percent LTVs. The effective rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.51 percent, the lowest rate since June 2013, from 3.53 percent, with points decreasing to 0.30 from 0.31 (including the origination fee) for 80 percent LTVs. The effective rate decreased from last week.
The average contract interest rate for 5/1 ARMs was unchanged at 3.25 percent, with points decreasing to 0.26 from 0.32 (including the origination fee) for 80 percent LTVs. The effective rate decreased from last week.
