Mortgage Activity Declines in October as Mortgage Rates Increase

The Market Composite Index, a measure of mortgage loan application volume by the Mortgage Bankers Association's (MBA) weekly survey, decreased 13.9% month-over-month on a seasonally adjusted (SA) basis due to higher mortgage rates.

This decline was reflected in both the Purchase and Refinance Indices, which fell by 4.4% and 23%, respectively. However, compared to October 2023, the Market Composite Index is up by 39%, with the Purchase Index seeing a slight 1.9% increase and the Refinance Index higher by 149.9%.

The average 30-year fixed mortgage rate reversed its downward trajectory with an increase of 36 basis points, following volatility in the 10-year Treasury yield. This brought the rate back to around the same level as it was in August at 6.53%. However, compared to its peak last October, the current rate is 125 bps lower.

NAHB Economist Catherine Koh provides more in this Eye on Housing post.