US Mortgage Applications Fall in the Week Ending October 17

According to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Friday, October 17, the Market Composite Index—a measure of mortgage loan application volume—decreased 0.3% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index declined 0.2%.

The Refinance Index rose 4.0% from the previous week and was 81.0% higher than the same week one year ago.

The seasonally adjusted Purchase Index fell 5.0% from one week earlier. On an unadjusted basis, the Purchase Index also decreased 5.0% from the prior week but was 20.0% higher than the same week a year ago.

In remarks accompanying the release, MBA Vice President and Deputy Chief Economist Joel Kan said:

“The lowest mortgage rates in a month spurred an increase in refinance activity, including another pickup in ARM applications. The 30-year fixed rate decreased to 6.37%, and all other loan types also decreased. The refinance index increased 4%, driven by a 6% increase in conventional refinances and a 12% increase in FHA refinance applications, as borrowers remain attentive to these opportunities to lower their monthly mortgage payment. VA refinances bucked the trend and were down 12%.

ARM applications increased 16% over the week, which pushed the ARM share to 11%, with the ARM rate more than 80 basis points lower than the 30-year fixed rate. Purchase applications were down over the week but remained 20% higher than a year ago.”