NEW YORK – Mortgage loan application volume slipped 0.2% on a seasonally adjusted basis in the week ending October 1, according to the Mortgage Bankers Association Weekly Mortgage Applications Survey.
The refinance index fell 2.5%, while the seasonally adjusted purchase index soared 9.3%, to its highest since the week ending May 7.
"The increase in purchase activity was led by a 17.2 percent increase in FHA applications, while conventional purchase applications also increased by 3.6 percent," said Jay Brinkmann, MBA's Chief Economist. "This is the second straight weekly increase in purchase applications and the highest Purchase Index level since the expiration of the homebuyer tax credit program. One possible driver of last week's big increase in FHA applications was a desire by borrowers to get applications in before new FHA requirements took effect October 4th, which included somewhat higher credit score and down payment requirements."
The seasonally adjusted four-week moving average for the market index fell 3.0%, while the four-week purchase index moving average rose 2.0% and four-week refinance index declined 4.2%.
Refinancings were 78.9% of all applications in the week, down from 80.7% the previous week, while adjustable-rate mortgages (ARM) accounted for 6.1% of all volume, up slightly from 6.0% the prior week.
The average interest rate for 30-year fixed-rate mortgages dropped to 4.25% from 4.38%, while 15-year fixed-rate mortgages’ rate slid to 3.73% from 3.77%, and one-year ARMs grew to 7.11% from 7.04%.
