Inventory
info icon
Single family homes on the market. Updated weekly.Powered by Altos Research
735,718-296
30-yr Fixed Rate30-yr Fixed
info icon
30-Yr. Fixed Conforming. Updated hourly during market hours.
6.94%0.02
MortgageOrigination

MBA: Mortgage applications rise despite slight decline in refinances

The Market Composite Index rose 0.6% last week

Last week, the 30-year fixed-rate mortgage rose to 4.05%, spurring a slight decline in refinance demand. Despite this retreat, the Mortgage Bankers Association indicates mortgage applications increased by 0.6%.

This means on an unadjusted basis, the index inched forward 0.3% for the week ending on October 25, 2019.

“The 10-year Treasury rate rose slightly last week, as markets expected more progress toward a trade deal between the U.S. and China,” said Joel Kan, MBA’s vice president of economic and industry forecasting. “Mortgage rates increased for the second straight week as a result, with the 30-year fixed-rate climbing to 4.05% – the highest level since the end of July.”

Mortgage applications were mostly unchanged, with purchase activity rising 2% and refinances decreasing less than 1%, Kan said.

According to the MBA, the seasonally adjusted and unadjusted Purchase Indexes both rose 2% from the previous week. However, the unadjusted Purchase index is now 10% higher than the same week a year ago.

Kan said considering how much lower rates are compared to the end of 2018, purchase applications should continue showing solid year-over-year gains.

Here is a more detailed breakdown of this week’s mortgage application data:

  • The refinance share of mortgage activity decreased to 58% from last week’s 58.5%.
  • The adjustable-rate mortgage share of activity rose to 5.2% of total applications.
  • The Federal Housing Administration’s share of mortgage apps fell to 12% from last week’s 12.1%.
  • The Department of Veterans Affairs share of applications moved backward to 11.8% from last week’s 13.5%.
  • The Department of Agriculture’s share of total applications increased from last week’s 0.6% to 0.5%.
  • Mortgage interest rates for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) ticked up from last week’s rate of 4.02% to 4.05%.
  • The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $484,350) increased from last week’s 3.96% to 4.01%.
  • The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA rose to 3.83% from last week’s 3.79%.
  • The average contract interest rate for 15-year fixed-rate mortgages grew from last week’s 3.39% to 3.4%.
  • The average contract interest rate for 5/1 ARMs increased to 3.43% from last week’s 3.29%.

Most Popular Articles

Latest Articles

Lower mortgage rates attracting more homebuyers 

An often misguided premise I see on social media is that lower mortgage rates are doing nothing for housing demand. That’s ok — very few people are looking at the data without an agenda. However, the point of this tracker is to show you evidence that lower rates have already changed housing data. So, let’s […]

3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please