Mortgage applications barely changed during the week ending Oct. 11, rising only 0.3% from a week earlier, the Mortgage Bankers Association said Wednesday.
The slight increase was lifted by a 4% rise in the refinancing index, while the purchase index slipped 5% from the previous week.
The refinance share of mortgage activity continued its steady incline, as refi filings made up 66% of total application, up from 64% a week prior.
"The government shutdown had a notable impact on the mortgage market last week. Purchase applications for government programs dropped by more than 7 percent over the week to their lowest level since December 2007, and the government share of purchase applications dropped to its lowest level in almost three years,” said Mike Fratantoni, MBA’s vice president of research and economics.
"Conventional purchase applications dropped as well, but not to the same extent, falling almost 4 percent for the week," he added
The average contract interest rate for a 30-year, fixed-rate mortgage with a conforming loan limit climbed to 4.46% from 4.42%.
Meanwhile, the 30-year, FRM jumbo jumped to 4.51% from 4.45%.
The average 30-year, FRM backed by the FHA ticked up to 4.16% from 4.15%, and the 15-year, FRM increased to 3.53% from 3.52%.
In addition, the 5/1 ARM also remained frozen at 3.25%.