Mortgage application volume hit its slowest weekly pace in nearly 30 years last week. Volume dropped 1.0% from the previous week on a seasonally adjusted basis, according to the Mortgage Bankers Association’s weekly survey for the week ending October 20, 2023.
Refinance applications increased 2% from a week earlier but are 8% lower than the same time last year. Purchase Applications decreased 2% from one week earlier, and are down 22% from the same time last year.
“Ten-year Treasury yields climbed higher last week, as global investors remained concerned about the prospect for higher-for-longer rates and burgeoning fiscal deficits. Mortgage rates followed Treasuries higher, with the 30-year fixed mortgage rate jumping 20 basis points to 7.9 percent – the highest since 2000. Rates have now risen seven consecutive weeks at a cumulative amount of 69 basis points,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Mortgage activity continued to stall, with applications dipping to the slowest weekly pace since 1995. These higher mortgage rates are keeping prospective homebuyers out of the market and continue to suppress refinance activity. The ARM share of applications inched up to 9.5 percent, its highest since November 2022.”
The ARM share of applications increased to 9.5%. The share of FHA applications rose to 15.2% from 14.8% last week. The share of VA loan apps fell to 10.5% from 10.7%. The share of USDA mortgage apps also dropped to 0.4% from 0.5%.
Interest rates on mortgages have increased across the board.
For the 30 year conforming fixed, the average rate rose to 7.90% from 7.70%. For the 30 year jumbo fixed, rates went up to 7.78% from 7.56%.
The 30 year FHA fixed jumped to 7.52% from 7.36%. The 15-year fixed rose to 7.08% from 6.98%. The 5/1 adjustable-rate increased as well, hitting 6.99% from 6.52%.
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