US Mortgage Applications Fall in the Week Ending October 3

According to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Friday, October 3, the Market Composite Index—a measure of mortgage loan application volume—decreased 4.77% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index declined 5.0%.

The Refinance Index fell 8.0% from the previous week but was 18% higher than the same week one year ago.

The seasonally adjusted Purchase Index decreased 1% from one week earlier. On an unadjusted basis, the Purchase Index also decreased 1% compared with the prior week but was 14% higher than the same week one year ago.

In remarks accompanying the release, MBA Senior Vice President and Chief Economist Mike Fratantoni said:

“With mortgage rates on fixed-rate loans little changed last week, refinance application activity generally declined, with the exception of a modest increase for FHA refinance applications. Refinance volume remains somewhat elevated relative to levels of a month ago. Purchase activity declined by about 1% for the week but continues to show moderate growth on an annual basis, and stronger growth for FHA loans, favored by first-time homebuyers.

The ARM share increased to 9.5% last week from 8.4% the prior week. Our survey shows 5/1 ARM rates are averaging almost a percentage point below 30-year fixed rates, and this differential is leading more purchase and refinance applicants to consider ARMs.”