The Mortgage Bankers Association's (MBA) Refinancing Index lost most of the gains it had made the previous week as applications for refinancing fell 8 percent during the week ended November 1.  Applications had increased 9 percent during the week ended October 25.  Refinancing decreased to 66 percent of total application volume from 67 percent the week before.

Refinance Index vs 30 Yr Fixed

The MBA's Market Composite Index, a measure of overall application volume, fell 7 percent on a seasonally adjusted basis and 8 percent unadjusted after gaining over 6 percent the previous week.  Applications for purchase mortgages decreased 5 percent on a seasonally adjusted basis from one week earlier and the Purchase Index was down 7 percent on an unadjusted basis compared to the previous week and unchanged from the same week in 2012.

Purchase Index vs 30 Yr Fixed

Interest rates were mixed.  The average contract interest rate for 30-year fixed-rate mortgages (FRM) with conforming loan balances ($417,000 or less) was 4.32 percent with 0.42 points compared to 4.33 percent with 0.26 points.  The effective rate increased from the previous week. The contract rate for jumbo 30-year FRM averaged 4.37 percent, up from 4.36 percent, and points eased to 0.26 from 0.27.  The effective rate increased.

Thirty-year FRM backed by the FHA had a rate increase of 1 basis point to an average of 4.07 percent and points increased to 0.22 from 0.17.  The effective rate increased.

The average contract interest rate for 15-year fixed-rate mortgages increased to 3.44 percent from 3.42 percent, with points remaining unchanged at 0.30.  The effective rate increased.

The share of adjustable rate mortgages (ARM) was unchanged from the previous week at 7 percent.  The average contract rate for 5/1 ARMs decreased to 3.08 percent from 3.17 percent, with points decreasing to 0.31 from 0.38 and the effective rate decreased as well.  

MBA reports application volume and interest rate information from its Weekly Application Survey which has been conducted since 1991.  Interest rates are reported for loans with an 80 percent loan to value ratio and points include the origination fee.  Base period and value for all indexes is March 16, 1990=100.