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Mortgage applications dropped for the second consecutive week as higher interest rates led to fewer refinancings.
The Mortgage Bankers Association’s market composite index decreased 2.6% on a seasonally adjusted basis for the period ending Oct. 31. During the previous week, mortgage loan application volume was down 6.6%.
The refinancing gauge fell 6% week over week and the purchase index increased 3%, the Washington-based trade group said. The share of applicants seeking to refinance was down two percentage points, to 63%.
Furthermore, the adjustable-rate mortgage share of activity accounted for 7.4% of total applications, while the Federal Housing Administration share represented 9.5%, Veterans Affairs was 10.7% and the USDA share consisted of 0.9%.
The average contract interest rate for a 30-year fixed-rate mortgage increased four basis points compared to a week earlier, to 4.17%. Meanwhile, the average 15-year fixed-rate mortgage was up 10 basis points, to 3.38%. Both the average 30-year fixed rate for jumbo loans and FHA-backed mortgages remained unchanged from the week before, at 4.13% and 3.84%, respectively.
The MBA’s weekly survey covers over 75% of all U.S. retail residential mortgage applications.