Mortgage loan application volume fell again this week, decreasing by 1.2% on a seasonally-adjusted basis during the week ending on October 28, 2016 and bringing the Market Composite Index to its lowest level since May 2016. On an unadjusted basis, the Index decreased by 2% during the same period.
The Refinance index decreased by 2% from the previous week. The Purchase index decreased by 0.4% on a seasonally-adjusted basis, and decreased by 2% on an unadjusted basis. The refinance share of mortgage activity remained unchanged at 62.7% of all applications. The adjustable-rate mortgage share increased to 4.4%, the FHA share remained unchanged at 11.1%, the VA share increased to 12.4%, and the USDA share again remained unchanged at 0.7%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) has grown to 3.75%, the highest rate since June, from 3.71%. Points for 80% loan to value (LTV) loans decreased to 0.32 to 0.35. (All 80% LTV loan reports include the origination fee.)
For 30-year fixed-rate mortgages with jumbo loan balances ($417,000 or more), the average contract interest rate increased again to its highest level since June at 3.74% from 3.71%. Points for 80% LTV loans decreased to 0.32 from 0.35.. For 30-year fixed-rate mortgages backed by the FHA, the average contract interest rate increased again to its highest level since June at 3.59%. Points for 80% LTV loans increased to 0.33 from 0.28 last week.
The average contract interest rate for 15-year fixed-rate mortgages increased to 3.04%, again its highest level since June, from 3.01%. Points for 80% LTV loans increased to 0.36 from 0.28. For 5/1 ARMs, the average contract interest rate increased to 2.97%, which points for 80% LTV loans increasing to 0.40 from 0.32.
