The Market Composite Index measure of total mortgage applications fell by 4.1% on a seasonally-adjusted basis during the week ending on October 21, 2016, according to the Mortgage Bankers Association’s Weekly Mortgage Application Survey. (Last week’s survey included an adjustment for the Columbus Day holiday.) Unadjusted, the Index increased by 7%.
The Refinance Index decreased 2% during the same period, again reaching lows not seen since June. The Purchase Index decreased 7% on a seasonally-adjusted basis to its lowest level since January, while the unadjusted Purchase Index increased by 3%.
The refinance share of mortgage activity has increased to 62.7% of total applications, while the adjustable-rate mortgage share has increased to 4.2%. The FHA share decreased to 11.1%, the VA share decreased to 12.2%, and the USDA share remains unchanged at 0.7%.
For 30-year fixed rate mortgages with conforming loan balances ($417,000 or less), the average contract interest rate decreased to 3.71%. The average contract interest rate for 30-year fixed rate mortgages with jumbo loan balances (more than $417,000) decreased to the same level, 3.71%. For 30-year loans backed by the FHA, the average contract interest rate increased to 3.56%.
For 30-year fixed-rate 80% LTV (loan-to-value) loans, points for mortgages with conforming balances increased to 0.37 from 0.36, and points for mortgages with jumbo balances rose to 0.35 from 0.29. Points for loans backed by the FHA decreased to 0.28 from 0.30. (All point reports include the origination fee.)
Average contract interest rates decreased to 3.01% for 15-year fixed-rate mortgages and 2.93% for 5/1 ARMs. Points for 15-year fixed-rate mortgages that are also 80% LTV loans rose to 0.28 from 0.27, and points for 5/1 ARMs that are also 80% LTV loans decreased to 0.32 from 0.41.
