MBA: Mortgage Applications Fall Once Again, Refi Share Drops

Although lenders are still feeling good about the rest of the year, new mortgage applications fell almost 5% for the week ending October 26, after declining 12% and 4% the prior two weeks, respectively.

According to figures compiled by the Mortgage Bankers Association, the refinancing share of applications dipped to 80% of all new business from 81% the week prior.

According to figures compiled by National Mortgage News and the Quarterly Data Report, refis accounted for 73% of the $859 billion of residential loans originated in the first-half.

MBA says its measurement covers roughly 75% of all retail residential mortgage applications. The trade group tracks the market though a composite index.

It added that the demand for ARM products remains weak at 4% of all new inquiries. Last week lenders, on average, were offering 30-year fixed-rate loans at 3.65% with 39 basis points upfront. The week before the rate was slightly lower at higher at 3.63% with 45 basis points upfront.