Mortgage application volume dropped 6.9% during the week ended October 13 as the average rate for a 30-year, fixed-rate mortgage increased to 7.70%, up from 7.67% the previous week, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Applications for refinances decreased 10% from the previous week and were down 12% compared with the same week one year earlier.
Applications for purchases decreased 6% compared with the previous week and were down 21% compared with a year ago.
“Applications decreased to their lowest level since 1995, as the 30-year fixed mortgage rate increased for the sixth consecutive week to 7.70 percent – the highest level since November 2000,” says Joel Kan, Vice President and Deputy Chief Economist for the MBA, in a statement. “Both purchase and refinance applications declined, driven by larger drops for conventional applications. Purchase applications were 21 percent lower than the same week last year, as homebuying activity continues to pull back given reduced purchasing power from higher rates and the ongoing lack of available inventory.
“The ARM share was 9.3 percent, the highest share in 11 months, as some borrowers look for alternative ways to lower their monthly payments,” Kan adds. “Refinance activity was at its lowest level since early 2023. There is very limited refinance incentive with mortgage rates at multi-decade highs.”
The refinance share of mortgage activity decreased to 30.5% of total applications, down from 31.6% the previous week.
The adjustable-rate mortgage (ARM) share of activity increased to 9.3% of total applications.
Photo: Kaleb Tapp