PhotoMortgage applications fell last week for the second week running, dropping 1.2% in the week ending October 28 to the lowest level since May.

The Mortgage Bankers Association also reports that the Refinance Index fell 2% from the previous week, with the refinance share of mortgage activity unchanged at 62.7% of total applications.

The FHA share of total applications held steady at 11.1%, the VA share increased to 12.4% from 12.2%, and the USDA share of total applications was unchanged at 0.7%.

Contract interest rates

  • The average contract interest rate for 30-year fixed-rate mortgages (FRMs) with conforming loan balances ($417,000 or less) rose four basis points -- from 3.71% to 3.75% -- its highest level since June 2016, with points decreasing to 0.36 from 0.37 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate increased from last week.
  • The average contract interest rate for 30-year FRMs with jumbo loan balances (greater than $417,000) increased to its highest level since June -- 3.74% from 3.71% -- with points decreasing to 0.32 from 0.35 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
  • The average contract interest rate for 30-year FRMs backed by the FHA inched up three basis points to 3.59%, its highest level since June 2016, with points increasing to 0.33 from 0.28 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
  • The average contract interest rate for 15-year FRMs increased to its highest level since June -- 3.04 percent from 3.01% -- with points increasing to 0.36 from 0.28 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
  • The average contract interest rate for 5/1 ARMs rose four basis points to 2.97%, with points increasing to 0.40 from 0.32 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.

The survey covers over 75% of all U.S. retail residential mortgage applications.


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