PhotoApplications for mortgages continue to fall.

Data from the Mortgage Bankers Association show applications were down for a fourth consecutive week in the week ending October 6 -- declining 2.1 percent.

The seasonally adjusted Purchase Index dipped 0.1 percent from a week earlier, while the Refinance Index was down 4 percent. Those factors pushed the refinance share of mortgage activity down 1.1 percent to 49.0 percent of total applications.

The adjustable-rate mortgage (ARM) share of activity rose to 6.6 percent of total applications, the FHA share went up 0.3 percent to 10.3 percent, the VA share of total applications rose to 10.6 percent from 10.0 percent the week before, and the USDA share slipped to 0.7 percent from 0.8 percent the previous week.

Contract interest rates

  • The average contract interest rate for 30-year fixed-rate mortgages (FRMs) with conforming loan balances ($424,100 or less) rose 4 basis points -- to 4.16 percent from 4.12 percent -- with points decreasing to 0.44 from 0.45 (including the origination fee) for 80 percent 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 $424,100) inched up to 4.11 percent from 4.09 percent, with points increasing to 0.31 from 0.26 (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 was up one basis point to 4.00 percent, with points decreasing to 0.36 from 0.37 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
  • The average contract interest rate for 15-year FRMs rose to 3.44 percent from 3.42 percent, with points decreasing to 0.36 from 0.39 (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 was up 3 basis points to 3.33 percent, with points unchanged at 0.43 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

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


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