Modest Uptick in Rates But Still Near 1-Month Lows

Mortgage applications continued to decline even as mortgage rates finally moved lower. The Mortgage Bankers Association (MBA) reported a 5.3% drop in total application volume for the week ending October 16, despite the first weekly decline in mortgage rates in more than two months. The average 30-year fixed mortgage rate fell to 7.41% from 7.50% the previous week. That improvement wasn't enough to revive demand, with both purchase and refinance applications moving lower. The seasonally adjusted Purchase Index fell 7% for the week and was 18% below year-ago levels . Refinances fared somewhat better, declining 2%, though activity remained 59% lower than a year earlier. “Purchase applications fell 18 percent behind last year's pace, as higher rates are pricing buyers ou