The quiet weeks for mortgage applications continue, as the latest mortgage application report from the Mortgage Bankers Association shows a very small drop. However, mortgage interest rates are on the move.
According to the latest MBA Weekly Mortgage Applications Survey for the week ending Oct. 28, mortgage applications decreased 1.2% from one week earlier.
Broken up, the Refinance Index decreased 2% from the previous week, while the seasonally adjusted Purchase Index decreased 0.4% from one week earlier.
The refinance share of mortgage activity stayed the same at 62.7% of total applications from the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 4.4% of total applications.
Both the Federal Housing Administration and the United States Department of Agriculture’s share of total applications remained unchanged, staying at 11.1% and 0.7%, respectively. The Veteran Affairs’ share of total applications increased to 12.4% from 12.2% the week prior.
All of the following mortgage product interest rates, except for the 5/1 ARM, reached its highest level since June 2016.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to 3.75%, from 3.71%.
Similarly, the average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) increased to 3.74%, from 3.71%.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 3.59%, from 3.56%, while the average contract interest rate for 15-year fixed-rate mortgages increased to 3.04%, from 3.01%.
The average contract interest rate for 5/1 ARMs increased to 2.97% from 2.93%.