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Mortgage Apps Dip Down

 

On Wednesday the MBA released its Weekly Mortgage Applications Survey for the week ending October 27, finding that mortgage applications decreased 2.6 percent week over week. Unadjusted, it decreased 3 percent, week-over-week.

How did the rest of the numbers stacked up? According to the data, the seasonally adjusted Purchase Index increased 1 percent, while the unadjusted Purchase Index decreased 2 percent compared with the previous week—and was 10 percent higher than the same week one year ago.

The refinance share of mortgage activity decreased to 48.7 percent of total applications from 49.5 percent the previous week. Meanwhile, the adjustable-rate mortgage (ARM) share of activity increased to 6.8 percent of total applications.

In terms of FHA loans, total FHA applications increased to 10.4 percent from 9.8 percent the week prior. The VA share of total applications decreased to 9.9 percent from 10.1 percent the week prior, while the USDA share of total applications increased to 0.8 percent from 0.7 percent the week prior.

In addition, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) increased to its highest level since July 2017, 4.22 percent, from 4.18 percent. And the average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100) increased to its highest level since July 2017, 4.16 percent, from 4.11 percent.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to its highest level since July 2017, 4.07 percent, from 4.04 percent—as the average contract interest rate for 15-year fixed-rate mortgages increased to its highest level since March 2017, 3.52 percent, from 3.48 percent.

Methodology: The survey covers more than 75 percent of all U.S. retail residential mortgage applications. Respondents include mortgage banks, commercial banks, and thrifts. Base period and value for all indexes is March 16, 1990=100.

About Author: Nicole Casperson

Nicole Casperson is the Associate Editor of DS News and MReport. She graduated from Texas Tech University where she received her M.A. in Mass Communications and her B.A. in Journalism. Casperson previously worked as a graduate teaching instructor at Texas Tech's College of Media and Communications. To contact Casperson, e-mail: [email protected].
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