Mortgage applications continued its recent downward trend, falling 2.1% from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending Oct. 6.
Individually, the Refinance Index decreased 4% from the previous week, while the seasonally adjusted Purchase Index decreased 0.1% from one week earlier.
The refinance share of mortgage activity fell below 50%, coming in at 49% of total applications. This is down from 50.1% the previous week. The adjustable-rate mortgage share of activity increased to 6.6% of total applications.
The Federal Housing Administration’s share of total applications increased, rising to 10.3% from 10% the week prior, as the Veterans Affairs’ share of total applications also increased to 10.6% from 10% the week prior.
Meanwhile, the Department of Agriculture’s share of total applications decreased to 0.7% from 0.8% the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) increased to 4.16% from 4.12%.
Similarly, the average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100) marginally increased to 4.11% from 4.09%.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA ticked up to 4.00% from 3.99%.
Lastly, the average contract interest rate for 15-year fixed-rate mortgages increased to 3.44% from 3.42%, while the average contract interest rate for 5/1 ARMs increased to 3.33% from 3.3%.