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U.S. mortgage applications fall, rates rise

Mortgage applications decreased 4.8 percent during the week ending October 26, the Mortgage Bankers Association announced today. The MBA measures mortgage loan application volume on a seasonally adjusted basis. On an unadjusted basis, application dropped 5 percent compared with the previous week.

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The Refinance Index also decreased 6 percent — reaching its lowest level since the end of August – but the seasonally adjusted Purchase Index grew 1 percent from one week earlier. However, unadjusted, the Purchase Index fell 0.3 percent from last week, and was 6 percent higher year-over-year.The share of refinancing activity decreased to 80 percent of total applications, compared to 81 percent the prior week. The adjustable-rate mortgage share of activity held at 4 percent of applications.

Interest rates for 30-year fixed-rate loans with conforming balances rose to 3.65 percent from 3.63 percent — the highest level since mid-September. Jumbo loans increased to 3.94 percent from 3.85 percent. Rates for Federal Housing Administration-backed 30-year fixed-rate loans stayed at 3.41 percent, the same as last week, and 15-year fixed-rate loan rates decreased to 2.95 percent from 2.96 percent. —Christopher Cameron

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