Industry NewsMortgage

Demand for mortgages cools

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Demand for mortgages fell a seasonally adjusted 12.3 percent during the week ending Oct. 23, driven largely by a 16.2 percent drop in applications for refinancings from the previous week, according to the Mortgage Bankers Association's Weekly Mortgage Applications Survey.Applications for purchase loans were down a seasonally adjusted 5.2 percent from a week earlier, and 15.4 percent from a year ago.Requests for refinancings made up 62.3 percent of all loan applications, down from 65 percent the week before. Applications for adjustable-rate mortgage (ARM) loans accounted for 6.9 percent of applications, up from 6.4 percent the previous week.The average contract interest rate for 30-year fixed-rate mortgages decreased to 5.04 percent from 5.07 percent, with points increasing to 1.25 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 4.53 percent from 4.51 percent, with p...