The
Mortgage Bankers Association (MBA) reported on Wednesday the mortgage
application volume in the U.S. rose 0.3 percent in the week ended October 22,
following a 6.3 percent decline in the previous week.
According
to the report, applications to purchase a home jumped 3.5 percent, while refinance
applications fell 1.6 percent.
Meanwhile,
the average fixed 30-year mortgage rate increased from 3.23 percent to 3.30
percent, the highest level since early April.
“The
increase in rates triggered the fifth straight decrease in refinance activity
to the slowest weekly pace since January 2020,” noted Joel Kan, MBA Associate
Vice President of Economic and Industry Forecasting. “Higher rates continue to
reduce borrowers’ incentive to refinance. Purchase applications picked up
slightly, and the average loan size rose to its highest level in three weeks,
as growth in the higher price segments continues to dominate purchase
activity.”