Overall mortgage loan application volume hit a four-month high for the week ending October 8 despite a drop in refinances.
Mortgage applications inched up 0.2% on a seasonally adjusted basis from the previous week, according to the Mortgage Bankers Association’s Market Composite Index. However, the refinance index posted a 1% decrease and was 16% lower than the same week a year ago. The seasonally adjusted purchase index, on the other hand, rose 2% week over week.
“Mortgage rates reached their highest level since June 2021, but application activity changed little this week. An increase in home purchase applications offset a slight decline in refinances,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting. “The increase in purchase applications was welcome news but was primarily driven by a 2% gain in conventional purchase applications, which kept the average loan size elevated.”