Mortgage applications decreased 6.7% from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) weekly survey. The survey looked at the week ending Oct. 18.
“Application activity decreased to its lowest level since July, as both purchase and refinance applications saw declines,” said Joel Kan, MBA’s vice president and deputy chief economist, in a statement.
The Market Composite Index, a measure of mortgage loan application volume, decreased 6.7% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the index decreased 7% percent compared with the previous week.
Kan noted that purchase applications were running stronger than last year’s pace, the fifth consecutive week that has occurred.
“Even though rates have been on a recent upswing, they are over a full percentage point lower than a year ago, which has kept some homebuyers in the market,” Kan said. “For-sale inventory has started to loosen, and home-price growth has eased in some markets, providing more options for buyers in combination with these lower rates.”
The refinance share of mortgage activity decreased to 45.7% of total applications from 46.5% the previous week. The adjustable-rate mortgage share of activity increased to 6.1% of total applications.
The Federal Housing Administration share of total applications increased to 16.9% from 15.9% the week prior. The U.S. Department of Veterans Affairs share of total applications decreased to 15.8% from 16.2% the week prior. The U.S. Department of Agriculture share of total applications remained unchanged at 0.4% from the week prior.
