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MBA noted that for the week ending Oct. 5, applications to refinance held steady at 83% of activity, essentially flat from the week prior. Purchase money inquiries accounted for the balance.
Consumers continue to shy away from ARMs, which accounted for just 3.9% of total applications, the lowest measurement since December 2009.
Mike Fratantoni, MBA’s vice president of research and economics, said refi volumes are “still near three-year highs, and purchase applications increased to the highest level since June, with both conventional and government volumes increasing.”
The trade group tracks applications through its Market Composite Index.
Many lenders and mortgage analysts continue to report strong volumes with some predicting that October will turn out to be a better month for activity than September which was very strong.
On average, mortgage bankers were offering 30-year fixed-rate mortgages with conforming loan balances at 3.56% compared to 3.56% the week prior. Jumbo rates averaged 3.74%.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 2.88% the lowest rate in the history of the survey.
