Mortgage Applications Decrease Despite Continued Drop In Interest Rates

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Mortgage application volume fell in the week ended September 25, despite another decrease in interest rates.

In a report released Wednesday, the Morgan Bankers Association reported that its market composite index, which measures mortgage loan application volume, decreased 2.8 percent on a seasonally adjusted basis.

On an unadjusted basis, the index decreased 3.1 percent from the previous week and 44.3 percent from the same week last year.

The decrease came despite falling interest rates, which reached their lowest levels in four months.

The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.94 percent from 4.97 percent.

The rate for 15-year fixed-rate mortgages fell to 4.34 percent from 4.41 percent, and the rate for one-year adjustable rate mortgages fell to 6.40 percent from 6.52 percent.

Meanwhile, the MBA's refinance index decreased 0.8 percent after rising 17.4 percent in the previous week. The seasonally adjusted purchase index decreased 6.2 percent.

The refinance share of mortgage activity increased last week, moving up to 65.3 percent of total applications from 63.8 percent the week before, while the ARM share of activity decreased to 6.2 percent of applications from 6.7 in the previous week.

Mortgage application volume fell in the week ended September 25, despite another decrease in interest rates. In a report released Wednesday, the Morgan Bankers Association reported that its market composite index, which measures mortgage loan application volume, decreased 2.8 percent on a seasonally adjusted basis. (Market News Provided by RTTNews)