After increasing 0.6% the previous week, mortgage application volume decreased 4.1% on an adjusted basis during the week ended Oct. 21, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.
Applications for refinances decreased 2%, while applications for purchases decreased 7%.
On an unadjusted basis, total volume increased 7% compared with the previous week, which included the Columbus Day holiday. Applications for purchases increased 3%, on an unadjusted basis, and increased 9% compared with the same week one year ago.
The refinance share of mortgage activity increased to 62.75% of total applications from 61.50% the previous week.
Mortgage rates inched back down after increasing for two straight weeks. The average rate for a 30-year, fixed-rate mortgage (FRM) was 3.71%, down from 3.73%.
The average rate for a 30-year jumbo FRM was 3.71%, down from 3.72%.
The average rate for a 30-year FRM backed by the Federal Housing Administration (FHA) was 3.56%, up from 3.54%.
The average rate for a 15-year FRM was 3.01%, down from 3.03%.
The average rate for a 5/1 adjustable-rate mortgage (ARM) was 2.93%, down from 2.97%.
The ARM share of activity increased to 4.2% of total applications.
The FHA share of total applications was 11.1%, down from 11.3%.
The Veterans Affairs share was 12.2%, down from 12.8%. The U.S. Department of Agriculture share of total applications remained unchanged at 0.7%.