Mortgage

Mortgage applications continue to slide, down 2.6%

Decline driven by big drop in refinancings despite low rates

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.

Most Popular Articles

Here's where the real housing affordability crisis exists

Some housing pundits report the demand for housing is strong, while these same pundits, on another day say that we are in a housing affordability crisis. Can the two narratives be accurate at the same time?

Feb 17, 2020 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please