Mortgage applications dropped again this week, falling 2.6% from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending October 31, 2014. 

The Market Composite Index, a measure of mortgage loan application volume, decreased 2.6% on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index decreased 3% compared with the previous week. 

The Refinance Index decreased 6% from the previous week.  The seasonally adjusted Purchase Index increased 3% from one week earlier. The unadjusted Purchase Index increased 1% compared with the previous week and was 13% lower than the same week one year ago.

The refinance share of mortgage activity decreased to 63% of total applications from 65% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 7.4% of total applications.

The FHA share of total applications increased to 9.5% this week from 8.9% last week.  The VA share of total applications remained unchanged at 10.7% this week and the USDA share of total applications remained unchanged at 0.9% this week.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to 4.17% from 4.13%, with points increasing to 0.22 from 0.21 (including the origination fee) for 80% loan-to-value ratio loans.  The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) remained unchanged at 4.13%, with points decreasing to 0.11 from 0.13 (including the origination fee) for 80% LTV loans.  The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA remained unchanged at 3.84%, with points increasing to 0.34 from 0.16 (including the origination fee) for 80% LTV loans.  The effective rate increased from last week.

The average contract interest rate for 15-year fixed-rate mortgages increased to 3.38% from 3.28%, with points increasing to 0.31 from 0.24 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.

The average contract interest rate for 5/1 ARMs increased to 3.08% from 2.94%, with points decreasing to 0.33 from 0.43 (including the origination fee) for 80% LTV loans.  The effective rate increased from last week.