As rates climb, U.S. mortgage applications fall

Mortgage applications decreased 12 percent during the week ending October 19, the Mortgage Bankers Association announced today. The MBA measures mortgage loan application volume on a seasonally adjusted basis. On an unadjusted basis, application dropped 2 percent compared with the previous week.

The Refinance Index also decreased 13 percent — reaching its lowest level since late August — and the seasonally adjusted Purchase Index fell 8 percent from one week earlier. Unadjusted, the Purchase Index increased 2 percent from last week, and was 7 percent higher year-over-year. The share of refinancing activity decreased to 81 percent of total applications, compared to 82 percent the prior week. The adjustable-rate mortgage share of activity held at 4 percent of applications.

Interest rates for 30-year fixed-rate loans with conforming balances rose to 3.63 percent from 3.57 percent — the third consecutive week of increase, pushing rates to their highest level since late September. Jumbo loans increased to 3.85 percent from 3.81 percent. Rates for Federal Housing Administration-backed 30-year fixed-rate loans increased to 3.41 percent from 3.34 percent and 15-year fixed-rate loan rates increased to 2.96 percent from 2.87 percent. — Christopher Cameron