Borrowers jumping on a dip in rates in order to refinance existing mortgages helped push loan applications up 5.1 percent for the week ending Oct. 10, even though applications for purchase mortgages were flat, the Mortgage Bankers Association said today.

The MBA’s Weekly Mortgage Applications Survey showed applications for refinance loans were up 12.5 percent from the previous week, while applications for conventional purchase loans fell 0.3 percent. The survey’s indexes, which are seasonally adjusted, showed applications for government purchase loans, largely FHA, down 2.1 percent from the previous week.

MBA economic forecaster Orawin Velz noted that Treasury yields were "extremely volatile." Lower yields earlier in the week appeared to have "spurred refinance activity, which then faded as the week went on and rates began to rise," Velz said.

The refinance share of mortgage activity increased to 46.4 percent of total applications from 43.4 percent the previous week, the MBA said. The adjustable-rate mortgage (ARM) share of activity increased to 2.6 percent from 2.3 percent.

The average contract interest rate for 30-year fixed-rate mortgages increased to 6.47 percent from 5.99 percent, with points including the origination fee increasing to 1.14 from 1.09 for 80 percent loan-to-value (LTV) ratio loans.

The average contract interest rate for 15-year fixed-rate mortgages increased to 6.17 percent from 5.71 percent, with points increasing to 1.18 from 1.16 for 80 percent LTV loans.

The average contract interest rate for one-year ARMs increased to 6.67 percent from 6.6 percent, with points increasing to 0.43 from 0.37 for 80 percent LTV loans.


What’s your opinion? Leave your comments below or send a letter to the editor.

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription