Lower Interest Rates Boost Mortgage Applications

mortgage applications

Mortgage applications in the United States rose by 5.6% in the week ended October 10th from the previous week while the average interest rate for a 30-year fixed mortgage dropped to its lowest level since June 2013. This is revealed in the Weekly Mortgage Applications Survey compiled by the Mortgage Bankers Association.

While the increase in application on a seasonally adjusted basis was 5.6%, it was 6% on an unadjusted basis. The applications for mortgage refinance rose by 11% on a seasonally adjusted basis from the week ended October 3rd to reach their highest level since June 2014. The share of refinance applications in the total volume of mortgage applications rose to 59% from 56% during the previous week.

The applications for home purchase loans did not experience upward movement. They declined by 1% on a seasonally adjusted basis from the previous week. On a seasonally unadjusted basis, the week-over-week decrease was 0.3%. The seasonally unadjusted volume of applications for home purchase loans during the week ended October 10th was 4% lower compared to the same time a year ago.

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The average contract rate for a 30-year fixed-rate mortgage loan dropped to 4.20% from its previous week’s level of 4.30% to reach its lowest level since June 2013. The average contract interest rate for a 30-year fixed jumbo home loan declined to 4.14% from 4.21% during the week before to reach its lowest level since May 2013.

The average contract interest rate for a 30-year fixed-rate FHA loan also reached its lowest level since June 2013. It decreased to 3.90% from 4% during the previous week. The average contract rate for a 15-year fixed rate mortgage loan declined to its lowest level since July 2014. It moved down to 3.41% from 3.48%. The average contract rate on a 5-year adjustable-rate mortgage declined to 3.05% from 3.20% during the week before to its lowest level since June 2013.

Christian

Christian

Christian Calvin mortgage Christian is a contributing writer for Mortgage.info. He is a graduate from the University of Tennessee with a degree in Communications and a concentration in Broadcasting. Christian has served as vice-president for a privately-held company for more than 20 years. Additionally, he has also applied his writing and business knowledge to various websites with a focus on business and sports news . . . both of which are passions. Christian enjoys playing golf and spending time with his family and friends.

Contact: christian@mortgage.info
Christian

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