Mortgage applications fell by 1.7% on a seasonally-adjusted basis from one week earlier for the week ending October 5th, 2018, according to the Mortgage Bankers Association (MBA)’s Weekly Mortgage Applications Survey.
On an unadjusted basis, the Market Composite Index, a measure of mortgage loan application volume, fell by 2% from the previous week. The Refinance Index fell by 3% over the same period, and both the seasonally-adjusted and unadjusted Purchase Index fell by 1%.
The refinance share of mortgage activity fell to 39.0% of total applications from 39.4% the previous week. The adjustable-rate mortgage (ARM) share rose to 7.3%. The FHA share rose to 10.5% from 10.2%, the VA share remained unchanged at 10.0%, and the USDA share rose to 0.8% from 0.7%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) rose to its highest level since February 2011 at 5.05%, up from 4.96% the previous week. Points for 80% loan-to-value ratio (LTV) loans rose to 0.51 from 0.49 the previous week. (All 80% LTV loan reports include the origination fee.) The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $453,100) rose to its highest level since July 2011 at 4.99%, up from 4.93% the previous week. Points for 80% LTV loans rose to 0.35 from 0.31, and the effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA rose to its highest level since April 2011 at 4.98%, up from 4.95%. Points for 80% LTV loans fell to 0.63 from 0.80, and the effective rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages rose to its highest level since April 2010 at 4.44%, up from 4.39%. Points for 80% LTV loans rose to 0.58 from 0.50, and the effective rate increased from last week.
The average contract interest rate for 5/1 ARMs rose to its highest level since the start of the survey at 4.29%, up from 4.24%. Points for 80% LTV loans rose to 0.52 from 0.48, and the effective rate increased from last week.
