US Mortgage Activity Falls in Week

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Mortgage applications in the U.S. decreased last week, after posting gains the week before, according to the Mortgage Bankers Association. 

Overall mortgage applications dropped 7 percent for the week ending November 1. Applications increased 6.4 percent the week before. 

The refinance index decreased 8 percent from the previous week. The refinance share slid to 66 percent of all applications, from 67 percent the week before. 

The seasonally adjusted purchase index decreased 5 percent from the week earlier, and is now at its lowest level since the end of December 2012. 

Mortgage activity may pick up as interest rates fall, analysts say. Last week Freddie Mac reported mortgage rates were at the lowest level in months. 

More from the report:

• The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 4.32 percent from 4.33 percent, with points increasing to 0.42 from  0.26 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.  The effective rate increased from last week.

• The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) increased to 4.37 percent from 4.36 percent, with points decreasing to 0.26 from 0.27 (including the origination fee) for 80 percent LTV loans.  The effective rate increased from last week.

• The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 4.07 percent from 4.06 percent, with points increasing to 0.22 from 0.17 (including the origination fee) for 80 percent LTV loans.  The effective rate increased from last week.

• The average contract interest rate for 15-year fixed-rate mortgages increased to 3.44 percent from 3.42 percent, with points remaining unchanged at 0.30 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

• The average contract interest rate for 5/1 ARMs decreased to 3.08 percent from 3.17 percent, with points decreasing to 0.31 from 0.38 (including the origination fee) for 80 percent LTV loans.  The effective rate decreased from last week.