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%0.01
Mortgage

Mortgage applications see slight decline despite 3% mortgage rate

VA refis jumped 11%

Mortgage applications held relatively steady last week, falling 0.7% from the week prior, according to a report from the Mortgage Bankers Association.

After hitting their highest level since mid-August the week before, refinances experienced a slight 0.3% dip but remained 44% higher than the same week a year ago. Refinances also continued to inch closer to two-thirds share of mortgage activity as they increased to 65.6% of total applications.

Despite the 30-year fixed mortgage rate declining to 3%, purchases also took a hit last week – falling 2% on a seasonally adjusted basis. However, they remained 24% higher than the same time last year.

“Applications for government mortgages offset some of the overall decline by increasing 3%, driven by a solid gain in government purchase applications and an 11% jump in VA refinance applications,” said Joel Kan, MBA’s vice president of economic and industry forecasting.

Last week, Kan mentioned demand waning in the entry-level portion of the market caused by supply and affordability hurdles – an issue he echoed this week as well.

That issue is further evidenced by an MBA report that showed purchase applications higher than $766,000 jumped anywhere from 49% to 74% between June and September, while the smallest loan tier of $150,000 or less increased no more than 3% in each of those months.


Here’s what housing professionals can use as a roadmap amid economic uncertainty

Find out how mortgage data can both reveal and solve lender pain points during these uncertain times.

Presented by: First American

Regardless of price point, housing supply remains a challenge for many aspiring buyers, but activity should continue to stay strong the rest of the year, Kan said.

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

  • The FHA’s share of mortgage apps fell to 10.7% from 11%.
  • The VA share of applications rose to 13.4% from 12.2%.
  • The USDA share of total applications rose to 0.6% from 0.5%.
  • The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($510,400 or less) fell to 3% from 3.01%.
  • The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $510,400) fell to 3.3% from 3.31%.
  • The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA remained unchanged at 3.12% from the week prior.
  • The average contract interest rate for 15-year fixed-rate mortgages remained unchanged at 2.59% from the week prior.
  • The average contract interest rate for 5/1 ARMs fell to 2.63% from 2.8%.

Leave a Reply

Your email address will not be published. Required fields are marked *

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