The seasonally adjusted purchase index decreased 5% compared to the week ended October 17. On an unadjusted basis, the composite index decreased by 7% week-over-week. The unadjusted purchase index fell by 5% for the week and remains 15% lower year-over-year.
The seasonally adjusted purchase index and conventional purchase index were the lowest since February 2014, while the government purchase index was the lowest since August 2007.
Adjustable rate mortgage loans accounted for 8.2% of all applications, down from 9.4% in the prior week.
The MBA’s refinance index decreased by 7%, after rising by 23% in the previous week. The share of refinancings remained unchanged at 65%.
The MBA’s chief economist said:
Borrowers with jumbo loans tend to be most sensitive to changes in rates, and that sensitivity has been clearly apparent in the past few weeks with double and even triple digit percentage changes in refinance application volume for jumbo loans. The average loan size for refinance applications decreased to $263,600 in the most recent week from a survey high of $306,400 the previous week. The decrease was driven by a 41 percent drop in refinance applications for loans greater than $729,000, which had surged almost 130 percent the week before.
The average mortgage loan rate for a conforming 30-year fixed-rate mortgage increased from 4.10% to 4.13%. The rate for a jumbo 30-year fixed-rate mortgage rose from 4.03% to 4.13%. The average interest rate for a 15-year fixed-rate mortgage remained unchanged at 3.28%, again the lowest rate since May 2013.
The contract interest rate for a 5/1 adjustable rate mortgage loan remained unchanged at 2.94%, the lowest rate since June 2013. Rates on a 30-year FHA-backed fixed rate loan increased from 3.81% to 3.84%.
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