Mortgage loan application volume decreased last week as both refinance and purchase volume slowed down.
The Mortgage Bankers Association's index fell 6.6% on a seasonally adjusted basis in the period ending Oct. 24, compared to
The refinancing gauge plunged 7% from the previous week and the purchase index dropped 5%. Furthermore, both the purchase index and conventional purchase indexes hit their lowest mark since February, the Washington-based trade group said, while the government purchase index reached a low not seen in more than seven years.
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, said Mike Fratantoni, chief economist for the Mortgage Bankers Association. Fratantoni attributed this plummet to a 41% drop in refinance applications for loans greater than $729,000, which had surged nearly 130% the week before.
The share of applicants seeking to refinance remained unchanged at 65%. The adjustable-rate mortgage share decreased to 8.2% of total applications, while Federal Housing Administration loans accounted for 8.9% of the total activity and Veterans Affairs loans represented 10.7%.
All 30-year fixed mortgage loan products had rising interest rates. The average rate on a 30-year fixed mortgage was up three basis points, to 4.13%. A 30-year mortgage backed by the FHA increased three basis points, to 3.84%. Lastly, the average 30-year jumbo loan jumped 10 basis points, to 4.13%.
Meanwhile, the average contract interest rate for 15-year fixed mortgages held steady at 3.28%, the MBA said.
