MBA: Mortgage Applications Fell 6.0%

After increasing 2.3% the previous week, mortgage application volume fell 6.0% on an adjusted basis during the week ended Oct. 7, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.

Applications for refinances decreased 8%, due to higher rates, while applications for purchases fell 3%.

On an unadjusted basis, total volume decreased 6.0%. Applications for purchases decreased 2% compared with the previous week and increased 27% compared with the same week one year earlier.

The refinance share of mortgage activity decreased to 62.4% of total applications from 63.8% the previous week.

The average rate for a 30-year, fixed-rate mortgage (FRM) was 3.68%, up from 3.62% the previous week.

The average rate for a 30-year jumbo FRM was 3.67%, up from 3.60%.

The average rate for a 30-year FRM backed by the Federal Housing Administration (FHA) was 3.54%, up from 3.50%.

The average rate for a 15-year FRM was 2.97%, up from 2.93%.

The average rate for a 5/1 adjustable-rate mortgage (ARM) remained unchanged at 2.92%.

The ARM share of activity decreased to 4.1% of total applications.

Looking at the government loans, applications for mortgages backed by the FHA represented about 10.9% of all applications – up from 10.0% the week prior. The Veterans Affairs share was 12.0%, up from 11.4%. The U.S. Department of Agriculture share of total applications remained unchanged at 0.7%.

All rates are based on closings. The survey covers over 75% of all U.S. retail residential mortgage applications.


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