Mortgage applications decreased 6.3% from one week earlier, according to data from the Mortgage Bankers Association‘s (MBA) Weekly Mortgage Applications Survey for the week ending October 15.
The Market Composite Index, a measure of mortgage loan application volume, decreased 6.3% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 6% compared with the previous week. The Refinance Index decreased 7% from the previous week and was 22% lower than the same week one year ago. The seasonally adjusted Purchase Index decreased 5% from one week earlier. The unadjusted Purchase Index decreased 5% compared with the previous week and was 12% lower than the same week one year ago.
“Refinance applications declined for the fourth week as rates increased, bringing the refinance index to its lowest level since July 2021,” says Joel Kan, MBA’s associate vice president of economic and industry forecasting. “The 30-year fixed rate has increased 20 basis points over the past month and reached 3.23 percent last week – the highest since April 2021.”
“The 15-year fixed rate increased to 2.54 percent, which is the highest since July,” Kan continues. “Purchase activity declined and was 12 percent lower than a year ago, within the annual comparison range that it has been over the past six weeks. Insufficient housing supply and elevated home-price growth continue to limit options for would-be buyers.”
The refinance share of mortgage activity decreased to 63.3% of total applications from 63.9% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 3.3% of total applications.