Industry NewsMortgage

Demand for purchase loans eases

Refinancings hold steady as rates rebound

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Applications for mortgages fell a seasonally adjusted 1.8 percent for the week ending Oct. 9, due largely to a 5 percent drop in demand for purchase loans from the previous week, the Mortgage Bankers Association said in releasing the results of its Weekly Mortgage Applications Survey.Looking back a year, applications for purchase loans were down 6.8 percent. Applications for refinancings were essentially flat from the previous week, declining by a seasonally adjusted 0.1 percent, the MBA said. Refinancings accounted for 67.4 percent of all mortgage applications, up from 66.3 percent the previous week.The average contract interest rate for 30-year fixed-rate mortgages increased to 5.02 percent from 4.89 percent, with points decreasing to 1.11 from 1.13 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.The average contract interest rate for 15-year fixed-rate mortgages increased to 4.44 percent from 4.32 percent, with points remaining unchanged at 1.04 (inclu...