QE3 introduction had no immediate impact on mortgage activity, announcement shows

Mortgage applications fell an adjusted 0.2 percent for the week ending Sept. 14, according to weekly survey data released today by the Mortgage Bankers Association. Purchases fell 4 percent from the previous week, but was 8 percent higher than the same period a year ago, and refinance applications dropped by 1 percent. The latter application class comprised 81 percent of all activity for the week, up from 80 percent the previous week.

Mortgage rates largely fell last week, as the Federal Reserve announced a third round of quantitative easing. Interest for 30-year fixed-rate mortgages dropped 3 basis points to 3.72 percent, the lowest in the history of MBA’s survey. Thirty-year fixed-rate mortgage loans with jumbo balances saw their interest rate slump one-hundredth of a percentage point to 3.99 percent. Meanwhile, interest rates for Federal Housing Administration-backed 30-year fixed-rate loans held steady at 3.05 percent and conventional 15-year fixed-rate loans achieved a new low, falling to 3.03 percent from 3.07 percent. — Adam Fusfeld