MBA: Mortgage Applications Decrease

The Weekly Mortgage Application Survey of the Mortgage Bankers Association -- with data for the week ending October 12 -- was released October 17.

Application Volume:

• The Market Composite Index, a measure of mortgage loan application volume, decreased 4.2% on a seasonally adjusted basis from one week earlier.
  
  
• The Refinance Index decreased 5% from the previous week.
  
  
• The seasonally adjusted Purchase Index increased 1% from one week earlier. This is the highest Purchase Index observed in the survey since early June 2012.

Interest Rates

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) increased to 3.57% from 3.56%.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) increased to 3.81% from 3.74%.

The average contract interest rate for 30-year fixed-rate mortgages backed by FHA remained constant at 3.34%.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 2.87% from 2.88%.  The 15-year contract rate has decreased for eight consecutive weeks and is a new record low in the survey.

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The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry. Its membership of over 2,200 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field.

For additional information, visit MBA's web site: www.mortgagebankers.org.