The
Mortgage Bankers Association (MBA) reported on Wednesday the mortgage
application volume in the U.S. tumbled 6.3 percent in the week ended October 15,
following a 0.2 percent gain in the previous week.
According
to the report, applications to purchase a home decreased 4.9 percent, while refinance
applications plunged 7.1 percent.
Meanwhile,
the average fixed 30-year mortgage rate increased from 3.18 percent to 3.23
percent, the highest level since early April.
“Refinance
applications declined for the fourth week as rates increased, bringing the
refinance index to its lowest level since July,” noted Joel Kan, MBA Associate
Vice President of Economic and Industry Forecasting. “Purchase activity
declined and was 12 percent lower than a year ago, within the annual comparison
range that it has been over the past six weeks. Insufficient housing supply and
elevated home-price growth continue to limit options for would-be buyers.”