Mortgage applications decreased 17% from one week earlier as mortgage rates surged, according to data from the Mortgage Bankers Association’s (MBA) weekly application survey for the week ending October 11, 2024.
The Market Composite Index, a measure of mortgage loan application volume, decreased 17% on both a seasonally adjusted and an unadjusted basis from one week earlier.
The refinance index decreased 26% from the previous week and was 111% higher than the same week one year ago. The seasonally adjusted purchase index decreased 7% from one week earlier and was 7% higher than the same week one year ago.
“Mortgage rates moved higher for the third consecutive week, with the 30-year fixed rate increasing to 6.52%, its highest level since August,” said Joel Kan, MBA’s vice president and deputy chief economist. “The recent uptick in rates has put a damper on applications.”
Kan noted that the refinance application share fell below 50% for the first time in a month and while purchase applications declined, they remain 7% higher than a year ago.
“Demand is holding up to an extent for prospective first-time buyers. FHA purchase
applications were little changed despite the increase in rates, as some first-time homebuyers remain in the market because of improving housing inventory conditions.”
