Mortgage applications continued their fall for the fourth straight week, due to fluctuating mortgage rates and apprehensive homebuyers, according to the latest data from the Mortgage Bankers Association.
Applications decreased 6.7% from one week earlier, according to the MBA’s Weekly Applications Survey for the week ending October 18, 2024.
Joel Kan, MBA’s vice president and deputy chief economist, noted that “application activity decreased to its lowest level since July, as both purchase and refinance applications saw declines.”
On an unadjusted basis, MBA found that the Market Composite Index decreased 7% compared with the previous week. The Refinance Index decreased 8% from the previous week and was 90% higher than the same week one year ago. The seasonally adjusted Purchase Index decreased 5% from one week earlier. The unadjusted Purchase Index decreased 5% compared with the previous week and was 3% higher than the same week one year ago.
In addition, MBA found that the refinance share of mortgage activity decreased to 45.7% of total applications from 46.5% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 6.1% of total applications. The FHA share of total applications increased to 16.9% from 15.9% the week prior. The VA share of total applications decreased to 15.8% from 16.2% the week prior. The USDA share of total applications remained unchanged at 0.4% from the week prior.
“Purchase applications continued to run stronger than last year’s pace for the fifth consecutive week,” continued Kan. “Even though rates have been on a recent upswing, they are over a full percentage point lower than a year ago, which has kept some homebuyers in the market. For-sale inventory has started to loosen, and home-price growth has eased in some markets, providing more options for buyers in combination with these lower rates.”
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