Mortgage application volume fell this past week; however, unlike the previous dips, the decrease was due to a significant decline in applications for purchases.
In total, mortgage applications decreased 4.6% during the week ended Oct. 20, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.
The previous week’s results included an adjustment for the Columbus Day holiday.
Applications for refinances decreased 3% compared with the previous week, while applications for purchases decreased 6%.
On an unadjusted basis, total volume increased 6% compared with the previous week. Applications for purchases increased 4% on an unadjusted basis and were 10% higher compared with the same week one year earlier. The refinance share of mortgage activity increased to 49.5% of total applications.
The adjustable-rate mortgage (ARM) share of activity increased to 6.4% of total applications.
The average rate for 30-year fixed-rate mortgage, based on closings, was around 4.18%, up from 4.14%.