Mortgage applications increased 6.4 percent from one week earlier according to data from the Mortgage Bankers Association’s (MBA) weekly mortgage applications survey for the week ending Oct. 25.
The Market Compliance Index, a measure of mortgage loan application volume, increased 6.4 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the index increased 6 percent compared with the previous week. The Refinance Index increased 9 percent from the previous week. The seasonally adjusted Purchase Index increased 2 percent from one week earlier. The unadjusted Purchase Index increased 2 percent compared with the previous week and was 0.1 percent lower than the same week one year ago.
The refinance share of mortgage activity increased to 67 percent of total applications, the highest share since June 2013, from 65 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 7 percent of total applications.
The average contact interest rate for 30-year fixed rate mortgages with conforming loan balances ($417,000 or less) decreased 4.33 percent, the lowest rate since June 2013, from 4.39 percent, with points decreasing to 0.26 from 0.41 (including the origination fee) for 80 percent loan-to-value (LTV) loans. The effective rate decreased from last week. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages decreased to 3.42 percent, the lowest rate since June 2013, from 3.51 percent, with points remaining unchanged at .30 (including the origination fee) for 80 percent of LTV loans. The effective rate decreased from last week.