The Mortgage
Bankers Association (MBA) reported on
Wednesday that the mortgage application volume in the U.S. declined by 5.1 per
cent in the week ended October 4, following a 1.3 per cent drop the week before. This marked the sharpest weekly decrease in
total mortgage application volume since mid-August.
According to
the MBA’s data, last week’s plunge in mortgage applications was primarily due to a 9.3 per cent tumble
in mortgage refinance applications. In addition, mortgage applications to
purchase a home slipped 0.1 per cent.
The report also
revealed that the average fixed 30-year mortgage rate rose from 6.14 per cent to 6.36 per
cent, the highest level in five weeks.
Commenting on
the latest survey results, Mike Fratantoni, MBA’s SVP and chief economist, noted
that mortgage rates increased last week in response to stronger economic data from the U.S., including the September jobs report. “Conventional loan refinances, which
tend to have larger balances than government loans and hence are more
responsive for a given change in mortgage rates, fell to a greater extent over
the week,” he added.