Refinances continued to see their share of total activity decrease from the previous week
The volume of mortgage applications decreased for the third straight week, according to the Weekly Mortgage Applications Survey for the week ending Sept. 29 released by the Mortgage Bankers Association (MBA).
The Market Composite Index slipped 0.4% on a seasonally adjusted basis compared to the previous period. The index fell 1% on an unadjusted basis. The refinance index fell 2% from the previous week. Over the same period, the purchase index rose 1% both on seasonally adjusted and unadjusted bases. The unadjusted purchase index was 5% higher compared to the same period last year.
Refinances continued to see their share of mortgage activity decline from the previous week. Refinances accounted for 50.1% of total applications, down from their 50.8% share in the prior period. The share of adjustable-rate mortgages also fell during the period to 6% of total applications.
FHA applications grew to a 10% share from its previous 9.6% share, while the VA share of total applications was steady at 10%. USDA applications made up 0.8% of total applications, more than the 0.7% share they had the week prior.
The decrease in application activity for refinances came along with an upward trend in rates, MBA Associate Vice President for Industry Surveys and Forecasting Joel Kan said in an MBA NewsLink report.
"Rates moved higher over the course of last week, at least partially due to signs of stronger economic growth. Four of the five mortgage rates that we track increased, with our 30-year fixed rate increasing one basis point over the week,” he said.
With application volume as an indicator of the impact of recent hurricanes, Kan said Texas’ mortgage application activity has returned closer to national patterns. Activity has also somewhat recovered in Florida following the hurricanes, he said.
Related stories:
Refi activity share contracts amid app volume decrease
Mortgage apps slide, but refi share keeps growing
The Market Composite Index slipped 0.4% on a seasonally adjusted basis compared to the previous period. The index fell 1% on an unadjusted basis. The refinance index fell 2% from the previous week. Over the same period, the purchase index rose 1% both on seasonally adjusted and unadjusted bases. The unadjusted purchase index was 5% higher compared to the same period last year.
Refinances continued to see their share of mortgage activity decline from the previous week. Refinances accounted for 50.1% of total applications, down from their 50.8% share in the prior period. The share of adjustable-rate mortgages also fell during the period to 6% of total applications.
FHA applications grew to a 10% share from its previous 9.6% share, while the VA share of total applications was steady at 10%. USDA applications made up 0.8% of total applications, more than the 0.7% share they had the week prior.
The decrease in application activity for refinances came along with an upward trend in rates, MBA Associate Vice President for Industry Surveys and Forecasting Joel Kan said in an MBA NewsLink report.
"Rates moved higher over the course of last week, at least partially due to signs of stronger economic growth. Four of the five mortgage rates that we track increased, with our 30-year fixed rate increasing one basis point over the week,” he said.
With application volume as an indicator of the impact of recent hurricanes, Kan said Texas’ mortgage application activity has returned closer to national patterns. Activity has also somewhat recovered in Florida following the hurricanes, he said.
Related stories:
Refi activity share contracts amid app volume decrease
Mortgage apps slide, but refi share keeps growing
