Mortgage applications decreased 4.1% on a seasonally adjusted basis
The seasonally adjusted purchase index decreased 7% from one week earlier, while the unadjusted purchase index increased 3% compared with the previous week and was 9% higher than the same week one year ago, according to the MBA's Weekly Mortgage Applications Survey for the week ending Oct. 21.
On an unadjusted basis, total application activity increased 7% over last week.
The prior week's results included an adjustment for the Columbus Day holiday.
Refinance application volume dropped 2% from the prior week to its lowest level since June. The market share of refi applications increased to 62.7% from 61.5% the previous week.
The adjustable-rate mortgage share of activity increased to 4.2% while the Federal Housing Administration share decreased 2 basis points to 11.1%.
The VA share decreased to 12.2% from 12.8% and the USDA share remained unchanged at 0.7%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 3.71% from 3.73%. For 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) the average contract rate decreased 1 basis point to 3.71%.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 3.56% from 3.54%, while for 15-year fixed-rate mortgages backed by the FHA, the average decreased to 3.01% from 3.03%.
The average contract interest rate for 5/1 ARMs decreased 4 basis points to 2.93%.
