Mortgage applications in the United States declined by 0.1% in the week ending October 25, according to the latest Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey released on Wednesday.
According to the report, the average contract interest rate for 30-year fixed-rate mortgages rose to 6.73% from 6.52%. The seasonally adjusted Purchase Index increased by 5%% compared to the week before to 137.8, while the Refinance Index dropped by 6% from the previous week to stand at 630.0.
"Mortgage applications were essentially flat last week as rates increased for the fourth time in five weeks, driven by bond market volatility in advance of the presidential election and the next FOMC meeting," MBA Vice President and Deputy Chief Economist Joel Kan commented. "While near-term purchase application activity has weakened, we continue to expect housing demand from younger homebuyers to support purchase growth over the next few years as for-sale inventory loosens gradually," he added.
