Mortgage application volume fell 7.1% on an adjusted basis during the week ended Oct. 12, as the average rate for a 30-year fixed-rate mortgage jumped to 5.10%, up from 5.05% to reach the highest level since February 2011, according to the Mortgage Bankers Association’s Weekly Applications Survey.
This week’s results do not include adjustment for the Columbus Day holiday.
The drop is in keeping with seasonal cycles; mid-October is typically a period where home sales simmer down for the year.
Applications for refinances decreased 9% while applications for purchases fell 6%.
On an unadjusted basis, total volume fell 7% compared with the previous week.
Applications for purchases decreased 6% on an unadjusted basis but were up 2% compared with the same week one year earlier.
The refinance share of mortgage activity decreased to 38.1% of total applications.
The adjustable-rate mortgage (ARM) share of activity decreased to 7.1% of total applications.
The average rate for a 5/1 ARM was 4.34%, up from 4.29% to reach the highest level since the survey began in 2011.