Application activity flat even though rates fell
Mortgage application activity was unchanged from one week earlier although rates came back down slightly from their four-month high, according to the Mortgage Bankers Association.
The MBA's Weekly Mortgage Applications Survey for the week ending Nov. 3 found that the refinance index decreased 1% from the previous week.
The refinance application share increased to 49% from 48.7% the previous week.
Purchase applications were up 1% on a seasonally adjusted purchase index from one week earlier. Unadjusted, the purchase index decreased 2% compared with the previous week but was 9% higher than the same week one year ago.
The market composite index, a measure of mortgage loan application volume, remained unchanged on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the index decreased 1% compared with the previous week.
Adjustable-rate loan application activity decreased to 6.6% from 6.8%, while the share of Federal Housing Administration-guaranteed loans increased to 10.6% from 10.4%.
The share of applications for Veterans Affairs-guaranteed loans increased to 10% from 9.9% and the U.S. Department of Agriculture/Rural Development share decreased to 0.7% from 0.8%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) decreased 4 basis points to 4.18%. For 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100), the average contract rate decreased 4 basis points to 4.12%.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased 2 basis points to 4.05%. For 15-year fixed-rate mortgages the average decreased 1 basis point to 3.51%.
The average contract interest rate for 5/1 ARMs remained unchanged from the previous week at 3.33%.