Mortgage application volume increased 0.5% on an adjusted basis during the week ended Oct. 11, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Applications for refinances increased 4% while applications for purchases fell 4%.
Applications for refinances were 199% higher compared with the same week one year earlier.
On an unadjusted basis, total volume increased 1% compared with the previous week.
Applications for purchases decreased 4% on an unadjusted basis but were 12% higher compared with the same week one year earlier.
“The ongoing interest rate volatility is impacting a borrowers’ ability to lock in the lowest rate possible,” says Joel Kan, associate vice president of economic and industry forecasting for the MBA, in a statement.
“While near term economic uncertainty is still a factor, other fundamental issues, such as a lack of housing inventory in many markets, is preventing purchase activity from meaningfully rising,” Kan adds.
The refinance share of mortgage activity increased to 62.2% of total applications, up from 60.4% the previous week.
The adjustable-rate mortgage (ARM) share of activity increased to 5.5% of total applications.
The average rate for a 30-year fixed-rate mortgage, based on closings, was 3.92%, up from 3.90% the previous week.