Mortgage application volume decreased 0.1% during the week ended October 25, as the average rate for a 30-year fixed-rate mortgage increased to 6.73%, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Applications for refinances decreased 6% compared with the previous week but were up 84% compared with the same week one year ago.
Applications for purchases increased 5% compared with the previous week and were up 10% compared with the same week one year earlier.
“Mortgage applications were essentially flat last week as rates increased for the fourth time in five weeks, driven by bond market volatility in advance of the presidential election and the next FOMC meeting,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “The 30-year fixed rate, at 6.73 percent, was at its highest level since July 2024.
“After a brief burst of activity in September when rates were almost 60 basis points lower, overall applications have declined 27 percent, driven by a pullback in refinances,” Kan says. “Government refinances accounted for a large part of the decrease, dropping 12 percent over last week.
“Purchase applications increased compared to a holiday-shortened week and were 10 percent higher than a year ago,” he adds. “While near-term purchase application activity has weakened, we continue to expect housing demand from younger homebuyers to support purchase growth over the next few years as for-sale inventory loosens gradually.”
The refinance share of mortgage activity decreased to 43.1% of total applications, down from 45.7% the previous week.
The adjustable-rate mortgage (ARM) share of activity increased to 6.4 percent of total applications.
Photo: Ben Mullins