According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending October 9, applications decreased 0.7 percent from one week earlier.
The refinance index decreased 0.3 percent from the previous week and was 44 percent higher than the same week one year ago. The seasonally adjusted purchase index decreased 2 percent from one week earlier, while the unadjusted purchase index decreased 1 percent compared with the previous week and was 24 percent higher than the same week one year ago.
“Applications for government mortgages offset some of the overall decline by increasing 3 percent, driven by a solid gain in government purchase applications and an 11 percent jump in VA refinance applications,” says Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting.
“Refinance and purchase activity continue to run well ahead of last year’s pace, fueled by record-low rates and strong homebuyer demand,” he adds. “Housing supply is a challenge for many aspiring buyers, but activity should continue to stay strong the rest of the year.”
The refinance share of mortgage activity increased to 65.6 percent of total applications from 65.4 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 2.0 percent of total applications.
The FHA share of total applications decreased to 10.7 percent from 11.0 percent the week prior. The VA share of total applications increased to 13.4 percent from 12.2 percent the week prior. The USDA share of total applications increased to 0.6 percent from 0.5 percent the week prior.
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Photo: Joel Kan