Mortgage application volume fell 1.9% during the week ended October 31, as the average rate for a 30-year fixed-rate mortgage increased slightly to 6.31%, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Applications for refinances decreased 3% compared with the previous week but were up 151% compared with the same week one year ago.
Applications for purchases decreased 1% compared with the previous week but were up 26% compared with the same week one year ago.
“Mortgage rate movements were mixed last week as Treasury yields moved slightly higher following last week’s FOMC meeting,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “The 30-year fixed rate was mostly unchanged at 6.31 percent and remained close to the lowest level in over a year. Despite a decline last week, refinance applications are still significantly higher than a year ago.”
“The average loan size for refinance applications was at its highest level in six weeks, as borrowers with larger loans continued to seek ways to lower their monthly payments,” Kan adds. “Purchase applications declined slightly from a week ago, however, there was a slight increase in FHA purchase applications as prospective homebuyers continue to seek loan options to help manage challenging affordability conditions.”
The refinance share of mortgage activity decreased to 57% percent of applications, down from 57.1% the previous week.
The adjustable-rate mortgage (ARM) share of activity decreased to 8.7% of total applications.
Photo: Pascal Bernardon