Mortgage applications in the US slid 1.2 percent during the week ended October 5 from the previous week, according to the Mortgage Bankers Association (MBA).
The Market Composite Index, a measure of mortgage application volume, fell 1.2 percent on a seasonally adjusted basis from one week earlier, while the Index slipped one percent on an unadjusted basis.
At the same time, the Refinance Index dropped two percent. The seasonally adjusted Purchase Index rose two percent, while the unadjusted Purchase Index grew three percent – 12 percent higher than the same week last year.
Mike Fratantoni, Vice President for Research and Economics at the MBA said: “Refinance applications declined somewhat last week although volume is still near three-year highs, and purchase applications increased to the highest level since June, with both conventional and government volumes increasing.”
Moreover, the refinance share of overall mortgage activity remained unchanged at 83 percent from the previous week. But the percentage of borrowers who took out an adjustable-rate mortgage fell to 3.9 percent of total applications, the lowest level since December 2009.
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