Coming off of the previous report’s meager increase, mortgage applications posted a slightly bigger decline, according to the latest Weekly Mortgage Applications Survey from the Mortgage Bankers Association for the week ending Oct. 21.
The survey recorded that applications decreased 4.1% from one week earlier. However, it’s important to note that the previous week’s report included an adjustment for the Columbus Day holiday.
Broken up, the Refinance Index decreased 2% from the previous week to its lowest level since June 2016, while the seasonally adjusted Purchase Index decreased 7% from one week earlier to its lowest level since January 2016.
As a whole, the refinance share of mortgage activity marginally increased to 62.7% of total applications from 61.5% the previous week. The adjustable-rate mortgage (ARM) share of activity inched up to 4.2% of total applications.
The Federal Housing Administration share of total applications dipped to 11.1% from 11.3% the week prior. The Veteran Affairs share of total applications decreased to 12.2% from 12.8% the week prior. The United States Department of Agriculture share of total applications stayed frozen at 0.7% from the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) slightly dropped to 3.71% from 3.73%.
Similarly, the average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) fell to 3.71% from 3.72%.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 3.56% from 3.54%.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.01% from 3.03%, while the average contract interest rate for 5/1 ARMs decreased to 2.93 percent from 2.97%.