Mortgage applications decreased 1.7% on an adjusted basis during the week ended Oct. 5, as the average rate for a 30-year fixed-rate mortgage climbed to 5.05%, up from 4.96% to reach the highest level since February 2011, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Applications for refinances decreased 3% while applications for purchases dipped 1% compared with the previous week.
On an unadjusted basis, total volume fell 2% compared with the previous week. Applications for purchases decreased 1% on an unadjusted basis and were 2% higher compared with the same week one year earlier.
The refinance share of mortgage activity decreased to 39.0% of total applications – down from 39.4%
The adjustable-rate mortgage (ARM) share of activity increased to 7.3% of total applications.
The average contract interest rate for 5/1 ARM was 4.29%, up from 4.24% – its highest level since the series began in 2011.
The survey covers about 75% of the residential mortgage market.