Tags: mortgage | applications | rates | home | loan

Mortgage Applications Fall as Loan Rates Are Mixed

approved mortgage loan application with house key and rubber stamp
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Wednesday, 31 October 2018 09:53 AM

U.S. consumers filed fewer loan applications to buy a home and to refinance one, while home borrowing costs were mixed with 30-year mortgage rates unchanged on the week, the Mortgage Bankers Association said on Wednesday.

The Washington-based industry group said its seasonally adjusted index on mortgage requests fell 2.5 percent to 329.5 in the week ended Oct. 26. It hit 322.1 two weeks earlier, which was the weakest reading since Dec. 26, 2014.

"The 30-year fixed-rate mortgage held steady over the week, but total applications decreased overall. Purchase applications inched backward from the previous week, as well as compared to one year ago - the first year-over-year decline in purchase activity since August," said Joel Kan, AVP of economic and industry forecasts.

"Purchase applications may have been adversely impacted by the recent uptick in rates and the significant stock market volatility we have seen the past couple of weeks. Additionally, the ARM share of applications increased to its highest level since 2017, but since this is a compositional measure, it was driven by a greater decrease in applications for fixed-term loans relative to the decrease in ARM applications."

The refinance share of mortgage activity decreased to 39.4 percent of total applications from 39.8 percent the previous week. 

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) remained unchanged at 5.11 percent.

The average contract interest rate for 15-year fixed-rate mortgages increased to 4.55 percent from 4.50 percent.

© 2020 Thomson/Reuters. All rights reserved.


   
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U.S. consumers filed fewer loan applications to buy a home and to refinance one, while home borrowing costs were mixed with 30-year mortgage rates unchanged on the week, the Mortgage Bankers Association said on Wednesday.
mortgage, applications, rates, home, loan
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2018-53-31
Wednesday, 31 October 2018 09:53 AM
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