MBA: Mortgage Applications Take a Tumble, Purchase Share Rises

Although the Mortgage Bankers Association is feeling bullish about the rest of this year, new applications fell 12% for the week ending Oct. 19.

The week prior applications fell 4.2%, according to the trade group’s market composite index which claims to represent 75% of all retail lenders in residential space.

MBA noted, however, that the week prior included an upward adjustment for the Columbus Day holiday. “On an unadjusted basis, the Index decreased 2% compared with the previous week,” it said.

As a percentage of total new business, refinancings decreased to 81% of applications compared to 82% the previous week. ARM activity increased to 4% of applications.

The average contract interest rate for a 30-year fixed-rate mortgage with conforming loan balances ($417,500 or less) increased to 3.63% from 3.57% with points increasing to 45 basis from 44.

The rate offered on jumbo loans (30-year FRMs) increased to 3.85% percent from 3.81%.