Mortgage Demand Falls 5.3% as 30-Year Rate Dips to 7.41%
Updated
Updated · CNBC · Oct 21
Mortgage Demand Falls 5.3% as 30-Year Rate Dips to 7.41%
3 articles · Updated · CNBC · Oct 21
Summary
Total mortgage applications dropped 5.3% last week, extending the downturn even after the average 30-year fixed rate eased to 7.41% from 7.50%—its first decline in more than two months.
Purchase demand led the slide, falling 7% from the prior week and 18% from a year earlier, while refinance applications slipped 2% and remained 59% below year-ago levels.
MBA said the small rate pullback was not enough to offset the broader drag from borrowing costs that are still more than 1 percentage point above a year ago, leaving few borrowers able to benefit from refinancing.
ARMs held a 10.5% share of applications as their rates stayed nearly 1 percentage point below 30-year fixed loans, offering some buyers a cheaper—though riskier—option.
The weak demand aligns with a sharp September drop in pending home sales, and Mortgage News Daily said rates have stayed elevated this week after inflation-driven volatility last week.