PhotoFollowing a move -- albeit small -- to higher ground the previous week, mortgage applications posted a decline of 4.1% in the week ending October 21.

The Mortgage Bankers Association also reports the Refinance Index dropped 2% from the previous week, although the refinance share of mortgage activity increased to 62.7% of total applications from 61.5% a week earlier.

The adjustable-rate mortgage (ARM) share of activity came in at 4.2% of total applications, the FHA share inched down to 11.1% from 11.3% the week prior, the VA share was 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) dipped two basis points -- from 3.73% to 3.71% -- with points increasing to 0.37 from 0.36 (including the origination fee) for 80% 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 $417,000) slipped to 3.71% from 3.72%, with points increasing to 0.35 from 0.29 (including the origination fee) for 80% LTV loans. The effective rate remained unchanged from last week.
  • The average contract interest rate for 30-year FRMs backed by the FHA rose two basis points to 3.56%, with points decreasing to 0.28 from 0.30 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
  • The average contract interest rate for 15-year FRMs went down to 3.01% from 3.03%, with points increasing to 0.28 from 0.27 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
  • The average contract interest rate for 5/1 ARMs dropped four basis points to 2.93%, with points decreasing to 0.32 from 0.41 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.

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


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