Mortgage Applications Decrease

The Weekly Mortgage Application Survey of the Mortgage Bankers Association -- with data for the week ending October 26 -- was released October 31.

Application Volume:

• The Market Composite Index, a measure of mortgage loan application volume, decreased 4.8% on a seasonally adjusted basis from one week earlier.
• The Refinance Index decreased 6% from the previous week to the lowest level since the end of August.
• The seasonally adjusted Purchase Index increased 1% from one week earlier. The unadjusted Purchase Index declined 0.3% compared with the previous week and was 6% 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 3.65% from 3.63%. The 30-year fixed contract rate is at the highest level since mid-September.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) increased to 3.94% from 3.85%. The 30-year jumbo contract rate is at the highest level since mid-September.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA remained unchanged at 3.41%. The FHA contract rate is at the highest level since the end of September.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 2.95% from 2.96%.

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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.