The activity share of refinances applications also declined
Applications for mortgage decreased for the week ending Oct. 12 as most average contract interest rates increased, according to the Weekly Mortgage Applications Survey released by the Mortgage Bankers Association.
The Market Composite Index, a measure of mortgage loan application volume, fell 7.1% on a seasonally adjusted basis and declined 7% on an unadjusted basis. The results did not include an adjustment for the Columbus Day holiday.
The Refinance Index fell 9%. The Purchase Index slipped 6% on both seasonally adjusted and unadjusted bases. The unadjusted Purchase Index was 2% higher than the same week one year ago.
Applications for refinances took a 38.1% share of total applications, down from 39% in the prior period. The adjustable-rate mortgage (ARM) share of activity decreased to 7.1%.
FHA applications accounted for 10.4%, down from 10.5%. The VA share of total applications increased to 10.4% from 10%. Applications for USDA loans maintained their 0.8% share.
Rates for the 30-year fixed-rate mortgage with conforming loan balances averaged 5.1%, their highest level since February 2011, up from 5.05%, with points increasing to 0.55 from 0.51. The 30-year fixed-rate mortgage with jumbo loan balances decreased to 4.98% from 4.99%, with points decreasing to 0.34 from 0.35.
The average for 30-year fixed-rate mortgages backed by the FHA increased to its highest level since April 2011, 4.99%, from 4.98%, with points increasing to 0.69 from 0.63. The 15-year fixed-rate mortgage saw rates increase to their highest level since February 2011, 4.5%, from 4.44%, with points decreasing to 0.54 from 0.58. Rates for 5/1 ARMs averaged 4.34%, increasing to their highest level since the series began in 2011, from 4.29%, with points decreasing to 0.35 from 0.52.
