MBA: Mortgage applications increase amid Columbus Day holiday

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Breaking a recent downward trend, mortgage applications increased 3.6% from one week earlier, the latest Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending Oct. 13 reported.

However, the results did include an adjustment for the Columbus Day holiday.

As of late, mortgage applications have been posting a slight decline, recording a 2.1% drop in last week’s report.

This week’s Refinance Index increased 3% from the previous week, while the seasonally adjusted Purchase Index increased 4% from one week earlier.

Falling again, the refinance share of mortgage activity decreased to 48.6% of total applications from 49% the previous week.

The adjustable-rate mortgage share of activity decreased to 6.1% of total applications.

Looking at different loan types, the Federal Housing Administration’s share of total applications increased to 10.4% from 10.3% the week prior, as the Department of Agriculture’s share of total applications increased to 0.8% from 0.7% the week prior.

The Veterans Affairs’ share of total applications decreased to 10.5% from 10.6% the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) decreased to 4.14% from 4.16%.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100) increased to 4.13% from 4.11%.

Similarly, the average contract interest rate for 15-year fixed-rate mortgages increased to 3.45% from 3.44%, while the average contract interest rate for 5/1 ARMs decreased to 3.31% from 3.33%.

Lastly, the average contract interest rate for 30-year fixed-rate mortgages backed by the FHA remained unchanged at 4%.

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