It’s the slowest pace we’ve seen in 25 years.

Mortgage applications fell 14.2% for the week ending September 30 from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey

“Mortgage rates continued to climb last week, causing another pullback in overall application activity, which dropped to its slowest pace since 1997,” said Joel Kan, MBA’s associate vice president of Economic and Industry Forecasting. “The steep increase in rates continued to halt refinance activity and is also impacting purchase applications, which have fallen 37 percent behind last year’s pace.”

  • The Market Composite Index, a measure of mortgage loan application volume, decreased 14.2% on a seasonally adjusted basis from the prior week.
  • On an unadjusted basis, the Index decreased 14% compared with the previous week.
  • The Refinance Index decreased 18% from the previous week and was 86% lower than the same week one year ago.
  • The seasonally adjusted Purchase Index decreased 13% from one week earlier.
  • The unadjusted Purchase Index decreased 13% compared with the previous week and was 37% lower than the same week one year ago.
  • The refinance share of mortgage activity decreased to 29.0% of total applications from 30.2% the previous week.
  • The adjustable-rate mortgage (ARM) share of activity increased to 11.8% of total applications.

Kan said Hurricane Ian’s arrival in Florida last week also impacted the data. Applications in Florida fell 31% compared to 14% overall on a non-seasonally adjusted basis, the data showed.

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