Mortgage Demand Slips Following Holiday Adjustment

According to the Mortgage Bankers Association’s Weekly Applications Survey, mortgage application demand slowed last week, though the results may reflect the previous week’s upward adjustment for the Columbus Day holiday. The Market Composite Index, which measures total mortgage application volume, fell 12.0 percent, due to a 13.0 percent drop in the Refinance Index and an 8.0 percent slide in purchase activity. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances increased to 3.63 percent from 3.57 percent the week before. Despite the decline in demand, the refinance share of total mortgage activity was 81 percent and purchase loan demand was 7.0 percent higher than the same week one year ago. More here.

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