Mortgage applications fell by 1.9% at the end of October

“Mortgage rates moves were mixed last week as Treasury yields rose modestly after last week’s FOMC meeting. The 30-year fixed rate was largely unchanged at 6.31% and remained near the lowest level in more than a year,” said Joel Kan, MBA vice president and deputy chief economist. “Despite a decline last week, refinance applications are still significantly higher than a year ago. The average loan size for refinance applications was at a six-week high as borrowers with larger loans continued to look for ways to lower their monthly payments. Purchase applications fell slightly from a week ago, but there was a slight increase in FHA purchase applications as potential homebuyers continue to look for loan options to help manage challenging affordability conditions.”

The refinance share of mortgage activity fell to 57.0% of total applications from 57.1% the week before. The share of mortgage interest deduction (ARM) in activity fell to 8.7% of total applications. The Federal Housing Administration The (FHA) share of total applications also fell to 18.5% from 20.5% the week before.

The The U.S. Department of Veterans Affairs The share (VA) of the total number of applications has now increased from 13.4% the week before to 14.9%. The US Department of Agriculture (USDA) share of total applications also showed an increase, from 0.2% the week before to 0.3%.

The average contract rate for 30-year fixed-rate mortgages with conforming loan balances increased from 6.30% to 6.31%, and rates for 30-year fixed-rate mortgages with large loan balances increased from 6.38% to 6.43%.

The average contract rate for 30-year fixed-rate mortgages backed by the FHA increased from 6.12% to 6.13%, while the average rate for 15-year fixed-rate mortgages decreased from 5.67% to 5.65%. The average contract rate for 5/1 ARMs fell from 5.66% to 5.56%.