Mortgage Applications Fall in the Week Ending October 11th—Third Consecutive Decline

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Friday, October 11th, the Market Composite Index—a measure of mortgage loan application volume—decreased 17.0% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index declined 17.0% compared with the previous week.

The Refinance Index decreased 26.0% from the previous week but was 111.0% higher than the same week one year ago.

The seasonally adjusted Purchase Index decreased 7.0% compared to one week ago. The unadjusted Purchase Index increased 7.0% compared with the previous week but was 7.0% higher than the same week one year ago.

Commenting on the results of the survey, MBA Vice President and Deputy Chief Economist Joel Kan said:

“Mortgage rates moved higher for the third consecutive week, with the 30-year fixed rate increasing to 6.52%, its highest level since August. The recent uptick in rates has put a damper on applications. Refinance applications fell 26% to their lowest level since August, with comparable drops in both conventional and government refinances. This pushed the refinance share of applications back below 50% for the first time in over a month. Furthermore, purchase applications also decreased but notably remain 7% higher than a year ago.

Demand is holding up to an extent for prospective first-time buyers. FHA purchase applications were little changed despite the increase in rates, as some first-time homebuyers remain in the market because of improving housing inventory conditions.”