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US mortgage applications decline to lowest levels since July
(MENAFN) US mortgage applications saw a notable decline last week, reaching their lowest levels since July, as reported by the Mortgage Bankers Association (MBA) on Wednesday. The market composite index, which measures the volume of mortgage loan applications, decreased by 6.7 percent on a seasonally adjusted basis for the week ending October 18. When viewed on an unadjusted basis, the index dropped by 7 percent compared to the previous week, indicating a significant slowdown in mortgage activity.
Joel Kan, the MBA’s vice president and deputy chief economist, commented on the findings, stating that "application activity decreased to its lowest level since July, as both purchase and refinance applications saw declines." Despite the overall downturn, he noted that purchase applications have been consistently stronger than last year's pace for five consecutive weeks. This suggests that while the market is experiencing a downturn, there is still some resilience among homebuyers.
Kan also pointed out that although mortgage rates have been trending upward recently, they remain over a full percentage point lower than they were a year ago. This drop in rates appears to have kept some homebuyers engaged in the market, despite the recent fluctuations.
In terms of specific rates, the average contract interest rate for 30-year fixed-rate mortgages remained stable at 6.52 percent last week. In contrast, the rate for 15-year fixed-rate mortgages increased slightly to 5.98 percent, up from 5.94 percent. The MBA’s survey encompasses more than 75 percent of retail residential mortgage applications in the US, providing a comprehensive overview of the mortgage market's performance.
Joel Kan, the MBA’s vice president and deputy chief economist, commented on the findings, stating that "application activity decreased to its lowest level since July, as both purchase and refinance applications saw declines." Despite the overall downturn, he noted that purchase applications have been consistently stronger than last year's pace for five consecutive weeks. This suggests that while the market is experiencing a downturn, there is still some resilience among homebuyers.
Kan also pointed out that although mortgage rates have been trending upward recently, they remain over a full percentage point lower than they were a year ago. This drop in rates appears to have kept some homebuyers engaged in the market, despite the recent fluctuations.
In terms of specific rates, the average contract interest rate for 30-year fixed-rate mortgages remained stable at 6.52 percent last week. In contrast, the rate for 15-year fixed-rate mortgages increased slightly to 5.98 percent, up from 5.94 percent. The MBA’s survey encompasses more than 75 percent of retail residential mortgage applications in the US, providing a comprehensive overview of the mortgage market's performance.
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