PhotoAfter falling for four weeks in a row, mortgage applications are headed higher.

According to the latest survey from the Mortgage Bankers Association, applications rose 3.6 percent in the week ending October 13, including an adjustment for the Columbus Day holiday.

The Market Composite Index, a measure of mortgage loan application volume, increased 3.6 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 7 percent compared with the previous week. The Refinance Index increased 3 percent from the previous week.

The seasonally adjusted Purchase Index was up 4 percent from a week earlier, while the Refinance Index advanced 3 percent. The refinance share of mortgage activity, however, dipped to 48.6 percent of total applications from 49.0 percent the previous week.

The adjustable-rate mortgage (ARM) share of activity came in at 6.1 percent of total applications; the FHA share went from 10.3 percent to 10.4 percent; the VA share edged down to 10.5 percent from 10.6 percent; and the USDA share of total applications increased to 0.8 percent from 0.7 percent the week before.

Contract interest rates

  • The average contract interest rate for 30-year fixed-rate mortgages (FRMs) with conforming loan balances ($424,100 or less) slipped 2 basis points to 4.14 percent from 4.16 percent, with points unchanged at 0.44 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate decreased from last week.
  • The average contract interest rate for 30-year FRMs with jumbo loan balances (greater than $424,100) rose to 4.13 percent from 4.11 percent, with points increasing to 0.32 from 0.31 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
  • The average contract interest rate for 30-year FRMs backed by the FHA held steady at 4.00 percent from the week prior, with points increasing to 0.37 from 0.36 (including the origination fee) for 80 percent LTV loans. The effective rate was unchanged from last week.
  • The average contract interest rate for 15-year FRMs inched up 1 basis point to 3.45, with points increasing to 0.43 from 0.36 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
  • The average contract interest rate for 5/1 ARMs dropped to 3.31 percent from 3.33 percent, with points decreasing to 0.40 from 0.43 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

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


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