The Market Composite Index fell 2.1% from the previous period on a seasonally adjusted basis. The index slipped 2% over the same period on an unadjusted basis. The refinance index fell 4% from the prior period, while the purchase index fell 0.1% on both seasonally adjusted and unadjusted bases. The unadjusted purchase index was 7% higher compared to the same period last year.
Refinances accounted for 49% of total mortgage activity during the period, down from its previous market share of 50.1%. The activity share of adjustable-rate mortgages (ARM) rose to 6.6% of all applications.
applications increased to 10.3% of all applications from the previous share of 10%. The VA
share of total applications increased to 10.6% from 10%. The share of USDA applications dipped to 0.7% from the prior 0.8% share.
Average contract interest rates for various mortgage types increased during the period. The 30-year fixed-rate mortgage with conforming loan balances had an average rate of 4.16%, up from 4.12%, with points falling to 0.44 from 0.45, including the origination fee, for 80% loan-to-value ratio (LTV) loans.
Rates for 30-year fixed-rate mortgages with jumbo loan balances increased to 4.11% from 4.09%, with points increasing to 0.31 from 0.26 for 80% LTV loans. Those backed by the FHA posted an average rate of 4%, up from 3.99%, with points decreasing to 0.36 from 0.37 for 80% LTV loans.
The average rate for the 15-year fixed-rate mortgage rose to 3.44% from 3.42% with points decreasing to 0.36 from 0.39 for 80% LTV loans, while the average contract interest rate for 5/1 ARMs increased to 3.33% from 3.30%, with points remaining unchanged at 0.43 for 80% LTV loans.
Mortgage app volume sinks for 3rd straight week
Refi activity share contracts amid app volume decrease
The volume of mortgage loan applications posted another decrease for the week ending Oct. 6, according to the Weekly Mortgage Applications Survey released by the Mortgage Bankers Association (MBA).