Despite rock bottom interest rates, mortgage applications fell 15% for the week ending October 14 with purchase money loans hitting their lowest level in 15 years, according to new figures compiled by the Mortgage Bankers Association.
The trade group's seasonally adjusted Purchase Index fell 8.8%, the worst showing since December 1996. (On an unadjusted basis, the Purchase Index is 5.1% lower than the same week in 2010.)
MBA reported that refinancings continue to dominate the new business landscape, accounting for almost 77% of applications during the week. The week prior refis accounted for 79% of apps.
The average contract interest rate for a 30-year fixed-rate mortgage with conforming loan balances ($417,500 or less) increased to 4.33% from 4.25%, with points increasing slightly to 0.48 (including the origination fee) for 80% loan-to-value ratio loans.
For 30-year FRMs with jumbo loan balances, the average contract rate rose to 4.64% from 4.59%, with points falling to 0.45 from 0.49.
The average contract interest rate for a 30-year Federal Housing Administration-insured loan increased to 4.12% from 4.06%, while the contract interest rate for 15-year FRMs increased to 3.61% from 3.53%.
