Refi app volume rebounded almost 10%
Mortgage application volume increased during the week ending Oct. 19 as refinance applications rebounded, according to the Weekly Mortgage Applications Survey released by the Mortgage Bankers Association (MBA).
The Market Composite Index, a measure of mortgage loan application volume, increased 4.9% on a seasonally adjusted basis and increased 5% on an unadjusted basis. The previous results did not include an adjustment for the Columbus Day holiday.
The Refinance Index gained 10% from the previous survey. The Purchase Index increased 2% on both seasonally adjusted and unadjusted bases. The unadjusted Purchase Index was 0.2% higher than the same week one year ago.
Refinances took a 39.8% share of total mortgage application activity, up from 38.1% in the previous survey. The adjustable-rate mortgage share of activity decreased to 7% of total applications.
FHA applications accounted for 10.1%, down from 10.4% in the previous period. The VA share of total applications decreased to 10.1% from 10.4%. Applications for USDA mortgages saw its share decline to 0.7% from 0.8%.
"Mortgage application activity rebounded the week following the Columbus Day holiday, but both purchase and refinance levels remained lower than where they were two weeks ago," said Joel Kan, associate vice president of economic and industry forecasting at MBA. "The holiday impacted refinance applications more than purchases, as refinances rebounded almost 10%. Meanwhile, purchase applications increased 2% over the prior week but were still 4% lower than two weeks ago - a sign that both the jump in mortgage rates and tight inventory continue to hold back application activity."
