Mortgage applications increased 2.9% from one week earlier, according to the Mortgage Bankers Association, as the conforming interest rate fell to its lowest level since July.
The decline in mortgage rates was driven by the Federal Open Market Committee's Sept. 21 decision
The MBA's Weekly Mortgage Applications Survey for the week ending Sept. 30 found that the refinance index increased 5%
The market share of refi applications increased to 63.8% from 62.7% the previous week.
The seasonally adjusted purchase index decreased 0.1% from one week earlier, while the unadjusted purchase index decreased 0.2% compared with the previous week and was 14% lower than the same week one year ago.
The adjustable-rate mortgage share of activity increased to 4.5%, while the Federal Housing Administration share decreased 2 basis points to 10%.
The VA share decreased to 11.4% from 11.9% and the USDA share increased 1 basis point to 0.7%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 3.62% from 3.66%. For 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000), the average contract rate decreased to 3.6% from 3.64%.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.5% from 3.52%, while for 15-year fixed-rate mortgages, the average decreased to 2.93% from 2.95%.
The average contract interest rate for 5/1 ARMs remained unchanged at 2.92%.
