Little Movement in US Mortgage Applications

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Amid turmoil in Washington, the number of overall mortgage applications in the U.S. barely moved last week, after posting a minimal shift the week before.

Mortgage applications decreased 0.6 percent for the week ending October 18, according to the Mortgage Banker's Association. The results for last week do not reflect any adjustment for the Columbus Day holiday, which is not observed by all in the U.S.

The refinance index decreased 1 percent from the previous week. The refinance share accounted for 65 percent of total applications, down from 66 percent the prior week. The purchase index increased 1 percent. The purchase index is 2 percent lower than the same week a year ago, the MBA reports.

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 4.39 percent, the lowest rate since June 2013, from 4.46 percent, with points increasing to 0.41 from  0.31 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.  The effective rate decreased from last week.

• The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to 4.43 percent, the lowest rate since June 2013, from 4.51 percent, with points increasing to 0.26 from 0.15 (including the origination fee) for 80 percent LTV loans.  The effective rate decreased from last week.

• The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 4.15 percent from 4.16 percent, with points decreasing to 0.27 from 0.44 (including the origination fee) for 80 percent LTV loans.  The effective rate decreased from last week.

• The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.51 percent, the lowest rate since June 2013, from 3.53 percent, with points decreasing to 0.30 from 0.31 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

• The average contract interest rate for 5/1 ARMs was unchanged at 3.25 percent, with points decreasing to 0.26 from 0.32 (including the origination fee) for 80 percent LTV loans.  The effective rate decreased from last week.