The interest rate on 30-year fixed mortgages saw a decrease – 3.71 percent, down from 3.73 percent – effectively erasing last week’s four-month high, according to the Oct. 26 Weekly Mortgage Applications Survey conducted by the Mortgage Bankers Association (MBA).
While Federal Housing Administration (FHA) backed mortgages saw an increase – 3.56 percent, up from 3.54 percent, jumbo mortgages saw a decrease – 3.71 percent, down from 3.72 percent.
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For the period ending Oct. 21, mortgage applications decreased much more dramatically – 4.1 percent – compared with last week’s minuscule .6-percent drop. The survey said the results were adjusted to take into account the Columbus Day holiday. Of those applications, the home-refinancing share increased to 62.7 percent, up from 61.5 percent, and the adjustable-rate-mortgage share increased to 4.2 percent, up from 4.1 percent.
Other statistics of note from the MBA:
- Applications for FHA-backed mortgages decreased to 11.1 percent, down from 11.3 percent.
- Applications for Veterans Affairs-backed mortgages decreased to 12.2 percent, down from 12.8.
- Applications for U.S. Department of Agriculture-backed mortgages stayed flat at 7 percent.
Headquartered in Washington D.C., the Mortgage Bankers Association is the national association representing the real-estate finance industry. Since 1990, it has conducted a weekly survey that covers more than 75 percent of all U.S. residential-mortgage applications. Respondents include commercial banks, mortgage bankers and thrifts.