Mortgage applications are down again after one spike last week.

Applications decreased 3.7% from the prior week, for the week ending September 23, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey. 

  • The Market Composite Index, a measure of mortgage loan application volume, decreased 3.7% on a seasonally adjusted basis from the previous week. 
  • On an unadjusted basis, the Index decreased 4% compared with the previous week. 
  • The Refinance Index decreased 11% from the previous week and was 84% lower than the same week last year. 
  • The seasonally adjusted Purchase Index decreased 0.4% from one week earlier. 
  • The unadjusted Purchase Index decreased 1 percent compared with the previous week and was 29% lower than the same week one year ago.
  • The refinance share of mortgage activity decreased to 30.2% of total applications from 32.5% the previous week. 
  • The adjustable-rate mortgage (ARM) share of activity increased to 10.4% of total applications.

MBA’s Associate Vice President of Economic and Industry Forecasting, Joel Kan, attributed the Federal Reserve’s interest-rate increases and corresponding mortgage rate increases as the reason for the decline.

“Additionally, ongoing uncertainty about the impact of the Fed’s reduction of its MBS and Treasury holdings is adding to the volatility in mortgage rates,” Kan said. “With rates now more than double what they were a year ago, the pace of refinancing is running at a 22-year low and last week was more than 80 percent below last year’s level.”

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