Overview
- The Mortgage Bankers Association reported Wednesday that total application volume fell 5.3% week‑over‑week while the average 30‑year fixed rate slipped to 7.41%.
- Applications to buy homes dropped 7% for the week and were 18% below last year, while refinance requests fell 2% for the week and remain about 59% lower than a year ago.
- Adjustable‑rate mortgages held a 10.5% share as 5/1 ARM rates sat roughly one percentage point below 30‑year fixed rates, giving some buyers a lower initial payment option.
- The National Association of Realtors reported a sharp fall in September pending home sales, and analysts said last week’s mortgage volatility tracked inflation reports and briefly moved with oil prices though that link is unreliable.
- With rates roughly one percentage point higher than a year ago, many homeowners lack incentive to refinance and buyer activity is likely to stay muted unless rates fall substantially or credit conditions change.