Real estate purchase loan applications were on the rise last week as refinancings slowed, according to the Mortgage Bankers Association’s weekly mortgage applications survey. Long-term interest rates also increased.

The market composite index – a measure of mortgage loan application volume – was 737.5, an increase of 6.1 percent on a seasonally-adjusted basis from 694.8, one week earlier. This measure includes an adjustment to offset the effects of Columbus Day on application activity. On an unadjusted basis, the index decreased 4.4 percent compared with the previous week but was up 3.7 percent compared with the same week one year earlier. 

The survey covers the week ended October 14.

The seasonally-adjusted purchase index increased 7.3 percent to 503.9 from 469.5 the previous week, and the refinance index increased 4.5 percent to 2,095.7 from 2,004.9 one week earlier.

The four-week moving average for the seasonally-adjusted market index is down 1.2 percent to 716.8 from 725.4. The four-week moving average is up 0.2 percent to 482.6 from 481.7 for the purchase index while this average is down 3.0 percent to 2078.7 from 2143.2 for the refinance index.

The refinance share of mortgage activity decreased to 42.8 percent of total applications from 43.5 percent the previous week. The adjustable-rate mortgage share of activity decreased to 29.3 percent of total applications from 29.5 percent the previous week. 

The average contract interest rate for 30-year fixed-rate mortgages increased to 6.09 percent from 5.98 percent on week earlier, with points including origination fee increasing to 1.29 from 1.22 for 80 percent loan-to-value ratio loans.  

The average contract interest rate for 15-year fixed-rate mortgages remained at 5.62 percent, with points including origination fee increasing to 1.29 from 1.19 for 80 percent loan-to-value ratio loans. 

The average contract interest rate for one-year ARMs increased to 5.34 percent from 5.26 percent one week earlier, with points including origination fee increasing to 1 from 0.96 for 80 percent loan-to-value ratio loans. 

The survey covers approximately 50 percent of all U.S. retail residential mortgage originations, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts.

***

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