Mortgage application activity declined during the week ending Oct. 31, according to data from the Mortgage Bankers Association (MBA).
The Market Composite Index, the MBA’s measure of mortgage loan application volume, decreased 1.9% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the index dropped by 3%.
The seasonally adjusted Purchase Index dipped by 1% from one week earlier while the unadjusted index took a 2% drop – the latter was also 26% higher than the same week one year ago. The Refinance Index was down by 3% from the previous week and was 151% higher than the same week one year ago, while the refinance share of mortgage activity took a scant decline to 57.0% of total applications from 57.1% in the previous week.
Among the federal programs, the FHA share of total applications decreased to 18.5% from 20.5% the week prior while the VA share of total applications increased to 14.9% from 13.4% and the USDA share of total applications inched up to 0.3% from 0.2%.
Joel Kan, MBA’s vice president and deputy chief economist, observed, “Despite a decline last week, refinance applications are still significantly higher than a year ago. The average loan size for refinance applications was at its highest level in six weeks, as borrowers with larger loans continued to seek ways to lower their monthly payments. Purchase applications declined slightly from a week ago, however, there was a slight increase in FHA purchase applications as prospective homebuyers continue to seek loan options to help manage challenging affordability conditions.”
