Mortgage Applications Decrease

The Weekly Mortgage Application Survey of the Mortgage Bankers Association -- with data for the week ending October 19 -- was released October 24.

Application Volume:

• The Market Composite Index, a measure of mortgage loan application volume, decreased 12% on a seasonally adjusted basis from one week earlier, but that week included an upward adjustment for the Columbus Day holiday.  On an unadjusted basis, the Index decreased 2% compared with the previous week.
  
  
• The Refinance Index decreased 13% from the previous week to the lowest level since late August.
  
  
• The seasonally adjusted Purchase Index decreased 8% from one week earlier. The unadjusted Purchase Index increased 2% compared with the previous week and was 7% higher than the same week one year ago.

Interest Rates

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) increased to 3.63% from 3.57%.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) increased to 3.85% from 3.81%.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 3.41% from 3.34%.

The average contract interest rate for 15-year fixed-rate mortgages increased to 2.96% from 2.87%.

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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.