Refinances lost the activity share they gained from the previous week
The volume of mortgage loan applications slid during the week ending Oct. 27 as average interest rates rose to new highs, according to the Weekly Applications Survey released by the Mortgage Bankers Association.
The Market Composite Index declined 2.6% on a seasonally adjusted basis and fell 3% on an unadjusted basis. The Refinance Index slipped 5%. The Purchase Index decreased 1% on a seasonally adjusted basis and 2% on an unadjusted basis. Compared to the same week in 2016, the unadjusted figure increased 10%.
Applications for refinances accounted for 48.7% of total activity, a decrease from the previous 49.5% share. The share of applications for adjustable-rate mortgages increased to 6.8%.
The FHA share of total applications increased to 10.4% from 9.8%, while applications for VA loans recorded a 9.9% share, down from the 10.1% in the previous period. The USDA share of total applications increased to 0.8%% from 0.7%.
Average contract interest rates for various mortgage types all increased during the period, with those for 30-year fixed-rate mortgages with conforming loan balances, jumbo loan balances, and backed by the FHA rising to their highest levels since July.
The 30-year fixed-rate mortgages with conforming loan balances had a 4.22% average rate, up from 4.18%, with points increasing to 0.43 from 0.42, including the origination fee, for 80% loan-to-value ratio (LTV) loans.
The average rate for 30-year fixed-rate mortgages with jumbo loan balances was 4.16%, up from 4.11%, with points increasing to 0.27 from 0.24 for 80% LTV loans. The 30-year fixed-rate mortgage backed by the FHA recorded an average rate of 4.07%, up from 4.04%, with points increasing to 0.46 from 0.41 for 80% LTV loans.
Meanwhile, the 15-year fixed-rate mortgages posted an average rate of 3.52%, up from 3.48% to its highest level since March. Points rose to 0.44 from 0.40 for 80% LTV loans. The average rate for 5/1 ARMs increased to 3.33% from 3.29%. Points decreased to 0.50 from 0.54 for 80% LTV loans.
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The Market Composite Index declined 2.6% on a seasonally adjusted basis and fell 3% on an unadjusted basis. The Refinance Index slipped 5%. The Purchase Index decreased 1% on a seasonally adjusted basis and 2% on an unadjusted basis. Compared to the same week in 2016, the unadjusted figure increased 10%.
Applications for refinances accounted for 48.7% of total activity, a decrease from the previous 49.5% share. The share of applications for adjustable-rate mortgages increased to 6.8%.
The FHA share of total applications increased to 10.4% from 9.8%, while applications for VA loans recorded a 9.9% share, down from the 10.1% in the previous period. The USDA share of total applications increased to 0.8%% from 0.7%.
Average contract interest rates for various mortgage types all increased during the period, with those for 30-year fixed-rate mortgages with conforming loan balances, jumbo loan balances, and backed by the FHA rising to their highest levels since July.
The 30-year fixed-rate mortgages with conforming loan balances had a 4.22% average rate, up from 4.18%, with points increasing to 0.43 from 0.42, including the origination fee, for 80% loan-to-value ratio (LTV) loans.
The average rate for 30-year fixed-rate mortgages with jumbo loan balances was 4.16%, up from 4.11%, with points increasing to 0.27 from 0.24 for 80% LTV loans. The 30-year fixed-rate mortgage backed by the FHA recorded an average rate of 4.07%, up from 4.04%, with points increasing to 0.46 from 0.41 for 80% LTV loans.
Meanwhile, the 15-year fixed-rate mortgages posted an average rate of 3.52%, up from 3.48% to its highest level since March. Points rose to 0.44 from 0.40 for 80% LTV loans. The average rate for 5/1 ARMs increased to 3.33% from 3.29%. Points decreased to 0.50 from 0.54 for 80% LTV loans.
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Refi apps recover share as overall activity declines
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