Mortgage Applications Undeterred by Shutdown; Rates Slip

Mortgage Applications Undeterred by Shutdown; Rates SlipMortgage applications barely showed any response last week to the shenanigans in the nation’s capitol, with the government shutdown ending on Oct. 16, a Wednesday.
Applications for home loans only decreased 0.6 percent last week from one week earlier, according to data from the Mortgage Bankers Association released today.  The week’s results do not include an adjustment for the Columbus Day holiday.
The refinance component decreased 1 percent from the previous week.
The refinance share of mortgage activity decreased to 65 percent of total applications, down from 66 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 7 percent of total applications.
The uncertainty among lawmakers apparently was good news for home buyers, with rates dipping to lows last seen in early summer.
The average contract interest rate for 30-year fixed-rate mortgages, with conforming loan balances ($417,000 or less), decreased to 4.39 percent, the lowest rate since June 2013, from 4.46 percent, for 80 percent loan-to-value ratio (LTV) loans.
The average contract interest rate for 30-year fixed-rate mortgages, with jumbo loan balances (greater than $417,000), decreased to 4.43 percent, the lowest rate since June 2013, from 4.51 percent, for 80 percent LTV loans.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 4.15 percent from 4.16 percent for 80 percent LTV loans.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.51 percent, the lowest rate since June 2013, from 3.53 percent, for 80 percent LTV loans.
The average contract interest rate for 5/1 ARMs was unchanged at 3.25 percent for 80 percent LTV loans.

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