Purchase applications were down by 2% from the previous week and 13% less than the same week last year.The number of refinance loan applications was down by 10% from the previous week and 16% lower year-over-year. Despite the drop, refinances are still making up most of the mortgage loan activity, representing almost 65% of all loan activity.
The overall number of mortgage applications decreased by 6.9% for the week ending October 1, according to the Mortgage Bankers Association. The biggest drop occurred in the refinance loan category, which decreased by double digits week-over-week.
Current Mortgage Rates Guide
“Higher rates are reducing borrowers’ incentive to refinance, as declines were seen across all loan types,” said Joel Kan, MBA’s Associate vice president of economic and industry forecasting. “Purchase activity also fell, driven by a drop in conventional loan applications.”
Today’s mortgage rates are near historic lows. Freddie Mac’s average rates show what a borrower with a 20% down payment and a strong credit score might be able to get if they were to speak to a lender this week. If you are making a smaller down payment, have a lower credit score or are taking out a non-conforming (or jumbo) mortgage, you may see a higher rate. A good mortgage rate is one where you can comfortably afford the monthly payments and where the other loan details (such as the length of the loan, whether the rate is fixed or adjustable and other fees) fit your needs.
What is a good interest rate on a mortgage?