The
Mortgage Bankers Association (MBA) reported on Wednesday the mortgage
application volume in the U.S. decreased 3.3 percent in the week ended October 29,
following a 0.3 percent advance in the previous week.
According
to the report, applications to purchase a home dropped 1.6 percent, while refinance
applications plunged 4.3 percent.
Meanwhile,
the average fixed 30-year mortgage rate dropped from 3.30 percent to 3.24
percent, recording
the first decrease since mid-August.
“Mortgage
rates decreased for the first time since August, as concerns about supply-chain
bottlenecks, waning consumer confidence, weaker economic growth and rising
inflation pushed Treasury yields lower,” noted Joel Kan, MBA Associate Vice
President of Economic and Industry Forecasting. “Most of the decline in rates
came later in the week, which is likely why refinance applications declined to
the lowest level since January 2020, and the overall share of activity fell to
the lowest since July 2021. Government refinance applications fell for the
sixth straight week, as it becomes evident that an increasing number of
borrowers have already refinanced.”