US Mortgage Applications Fall in the Week Ending October 31

According to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Friday, October 31, the Market Composite Index—a measure of mortgage loan application volume—decreased 1.9% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index fell 3.0%.

The Refinance Index decreased 3.0% from the previous week but was 151.0% higher than the same week one year ago.

The seasonally adjusted Purchase Index decreased 1.0% from one week earlier. On an unadjusted basis, the Purchase Index declined 2.0% compared with the prior week but was 26.0% higher than the same week one year ago.

Commenting on this week’s survey, MBA Vice President and Deputy Chief Economist Joel Kan said:

“Mortgage rate movements were mixed last week as Treasury yields moved slightly higher following last week’s FOMC meeting. The 30-year fixed rate was mostly unchanged at 6.31% and remained close to the lowest level in over a year. Despite a decline last week, refinance applications are still significantly higher than a year ago. The average loan size for refinance applications was at its highest level in six weeks, as borrowers with larger loans continued to seek ways to lower their monthly payments. Purchase applications declined slightly from a week ago, however, there was a slight increase in FHA purchase applications as prospective homebuyers continue to seek loan options to help manage challenging affordability conditions.”