The ""Mortgage Bankers Association"":http://mba.org/default.htm (MBA) reported on Wednesday an increase in mortgage application volume to start October.
[IMAGE]According to data in MBA's Weekly Mortgage Applications Survey, loan application volume increased 1.3 percent [COLUMN_BREAK]
(seasonally adjusted) for the week ending October 4. On an unadjusted basis, applications rose about 1 percent.
After tumbling for most of the summer, MBA's Refinance Index increased 3 percent week-over-week, rising to its highest level in almost two months. The refinance share of total mortgage activity was 64 percent, up from 63 percent.
While refinances picked up, the Purchase Index slipped, falling 1 percent (both adjusted and unadjusted) from the week prior. Compared to last year, the Purchase Index was down 6 percent--the second straight week of yearly declines.
At the same time, mortgage interest rates fell with the start of the still ongoing government shutdown. The average contract interest rate for a 30-year fixed-rate mortgage was 4.42 percent compared to 4.49 percent a week earlier. Points increased to 0.44 from 0.34 (including the origination fee).