US Mortgage Applications Fall

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Mortgage applications in the U.S. decreased 0.4 percent for the week ending Sept. 27 compared to the week before, after increasing for two consecutive weeks, according to data released by the Mortgage Bankers Association.  

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, of $417,000 or less, decreased to 4.49 percent, the lowest rate since June 2013, from 4.62 percent, according to data from MBA. Last week, Freddie Mac reported interest rates reached the lowest level since July.

The market's refinance index increased three percent from the previous week. The refinance share of all mortgage activity increased to 63 percent, from 61 the previous week and reached the highest level since August 2013. 

More from the report:

• The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to 4.53 percent, the lowest rate since June 2013, from 4.66 percent, with points decreasing to 0.22 from 0.29 (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 4.21 percent, the lowest rate since June 2013, from 4.32 percent, with points decreasing to 0.35 from 0.37 (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 3.55 percent, the lowest rate since June 2013, from 3.68 percent, with points increasing to 0.33 from 0.28 (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 decreased to 3.26 percent, the lowest rate since June 2013, from 3.39 percent, with points decreasing to 0.28 from 0.35 (including the origination fee) for 80 percent LTV loans.  The effective rate decreased from last week.