Mortgage application volume dipped 1.8% during the week ended October 10, as rates remained basically flat, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Applications for refinances decreased 1% compared with the previous week but were up 59% compared with the same week one year ago.
Applications for purchases decreased 3% compared with the previous week but were up 20% compared with the same week one year ago.
Last week, the average contract interest rate for a 30-year fixed-rate mortgage with conforming loan balance was 6.42%, down slightly from 6.43% the previous week.
“Mortgage rate movements were mixed last week, with the 30-year fixed rate decreasing slightly to 6.42 percent,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “Mortgage applications were lower than the week before, as conventional and VA applications saw declines.”
“FHA applications saw a stronger week, and FHA refinance applications in particular increased 12 percent as the FHA rate stayed more than 10 basis points lower than the conventional fixed rate,” Kan adds. “Purchase applications declined for the third consecutive week but remained 20 percent ahead of last year’s pace as improving inventory conditions in certain markets continue to maintain homebuyer interest.”
The refinance share of mortgage activity increased to 53.6% of total applications, up from 53.3% the previous week.
The adjustable-rate mortgage (ARM) share of activity decreased to 9.3% of total applications.
Photo: Jonnelle Yankovich