Mortgage applications increased 6.4 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Oct. 25, 2013.
The Market Composite Index, a measure of mortgage loan application volume, increased 6.4 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased six percent compared with the previous week. The Refinance Index increased nine percent from the previous week. The seasonally adjusted Purchase Index increased two percent from one week earlier. The unadjusted Purchase Index increased two percent compared with the previous week and was 0.1 percent lower than the same week one year ago.
“More homeowners are seizing the opportunity to refinance with interest rates at four-month lows," said Quicken Loans economist Bill Banfield. "If we remain in this range, we should see HARP refinance eligible clients find significant benefits as well as great opportunities for homebuyers.”
The refinance share of mortgage activity increased to 67 percent of total applications, the highest share since June 2013, from 65 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to seven percent of total applications.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 4.33 percent, the lowest rate since June 2013, from 4.39 percent, with points decreasing to 0.26 from 0.41 (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 4.36 percent, the lowest rate since June 2013, from 4.43 percent, with points increasing to 0.27 from 0.26 (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 4.06 percent, the lowest rate since June 2013, from 4.15 percent, with points decreasing to 0.17 from 0.27 (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 3.42 percent, the lowest rate since June 2013, from 3.51 percent, with points remaining unchanged at 0.30 (including the origination fee) for 80 percent LTVs. The effective rate decreased from last week.
The average contract interest rate for 5/1 ARMs decreased to 3.17 percent, the lowest rate since June 2013, from 3.25 percent, with points increasing to 0.38 from 0.26 (including the origination fee) for 80 percent LTVs. The effective rate decreased from last week.
