Mortgage Rates Rise, Activity Declines

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The last month of mortgage purchasing and refinancing activities, as reflected in the Mortgage Bankers Association’s (MBA) latest weekly application surveys1, shows a rise in purchase applications and a decrease in refinancing as compared to the prior month’s activity.

The 30-year fixed-rate mortgage rate increased, averaging close to 3.15 percent for the month, and was 3.2 percent in the latest week. In the latest week, total mortgage applications, as proxied by the MBA’s Market Composite Index, decreased by 6.3% from the prior week, with the decline driven by a drop in refinancing.

 

On an unadjusted basis, purchasing in the latest week was 12 percent lower than what it was one year ago (year-over-year percent change for the same week) and refinancing was 22 percent lower.

The changes in mortgage data, particularly at the end of September, owed to investor concerns over disrupted supply chains, reacting to a recently released and widely followed indicator by the Institute for Supply Management.

The refinance share of mortgage activity decreased to 63.3 percent of total applications from 63.9 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 3.3 percent of total applications.


Notes:

  1. This monthly analysis of the MBA’s Weekly Application surveys, like similar ones before it on the Eye on Housing site since 2020, accounts for the last four weeks’ Weekly Application Surveys, with each one being released weekly every Wednesday.


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