Rates and Application Volume Both Higher in Past Week

Mortgagernapplications during the week ended October 7 were 1.3 percent higher than duringrnthe previous week according to the Mortgage Bankers Association’s (MBA) WeeklyrnMortgage Applications Survey.  The MarketrnComposite Index increased 1.3 percent on both a seasonally adjusted and anrnunadjusted basis compared to the week ended September 30.</p

The RefinancernIndex also increased 1.3 percent while the Purchase Index rose 1.1 percent onrnan adjusted basis and 1.2 percent unadjusted. rnThe Purchase Index was 2.9 percent lower than during the same week inrn2010.</p

Increased activityrnin the government loan category drove the changes.  The index measuring applications for government-backedrnpurchase mortgages rose 2.4 percent from the previous week while the GovernmentrnRefinance Index jumped 9.9 percent. rnIncreases measured by the Conventional Purchase and Refinance Indexesrnwere up 0.1 percent and 0.2 percent respectively.</p

Thernfour week moving averages for the Market Index and the Purchase Index were bothrnup.  The former rose 1.56 percent and thernlatter 2.15 percent.  The moving averagernfor the seasonally adjusted Purchase Index was down 0.51 percent.</p

Refinancing as arnshare of total mortgage application activity was unchanged from the previousrnweek at 79.1 percent and the adjustable-rate mortgage (ARM) portion was downrn6.0 percent to 6.4 percent of all applications.</p

Monthly data forrnSeptember showed that mortgages for purchases averaged $210,863 compared torn$212,736 in August.  Loans for the purposernof refinancing averaged $237,632 in September compared to $241.323 the previousrnmonth.  </p

Purchase Index vs 30 Yr Fixed</b</p