After surging 19.6% the last week of September as mortgage rates fell to new historic lows, refinancing activity eased back.
According to the Mortgage Bankers Association's weekly survey, the Refi Index fell 2.0% to 5336.8 in the week ending Oct. 5; however, "volume is still near three-year highs," noted Mike Fratantoni, MBA's vice president of research and economics.
Meanwhile, "purchase applications increased to the highest level since June, with both conventional and government volumes increasing," added Fratantoni. The Purchase Index increased 2.4% to 198.9. Overall, application activity slipped 1.2% from the prior week.
As a percent of total applications, refinancing share was unchanged at 83%, while ARM share dropped to 3.9%, its lowest level since December 2009. Also reported, the 30-year conforming fixed mortgage rate rose three basis points to 3.56%, while FHA rates dropped to a new low of 3.34% from 3.37%.