Mortgage applications finally rebounded as mortgage rates fell for a second straight week. The Mortgage Bankers Association (MBA) reported a 3.4% increase in total application volume for the week ending October 23.
The average 30-year fixed mortgage rate declined to 7.37% from 7.41%, its lowest level in three weeks. Both purchase and refinance applications moved higher, but just barely, and well below levels from last year.
The seasonally adjusted Purchase Index rose 4% for the week, and still 18% below year-ago levels. Refinances increased 3%, offering only a modest rebound from a market still 61% below its level a year earlier.
“The decline in rates gave borrowers some relief, with applications rebounding slightly, particularly conventional applications,” said MBA's Joel Kan. He noted that mortgage rates remain more than a percentage point above year-ago levels, while most homeowners have little incentive to refinance. Adjustable-rate mortgages accounted for 11.3% of applications, the highest share in more than a year, as borrowers sought lower monthly payments.
Mortgage Rate Summary:
- 30yr Fixed: 7.37% (from 7.41%) | Points: 0.76 (from 0.75)
- 15yr Fixed: 6.70% (from 6.73%) | Points: 0.85 (from 0.73)
- Jumbo 30yr: 7.28% (from 7.33%) | Points: 0.64 (from 0.60)
- FHA: 7.12% (from 7.13%) | Points: 1.07 (from 1.15)
- 5/1 ARM: 6.41% (from 6.46%) | Points: 1.20 (from 1.11)
