Mortgage applications slid 10.5% last week as the Columbus Day holiday and rising interest rates conspired to put a damper on the market.
The Mortgage Bankers Association said Wednesday its Market Composite Index dropped 10.5% on a seasonally adjusted basis from the previous week; the decline was the same on an unadjusted basis. The results did not include an adjustment for Columbus Day.
Seasonally adjusted, the Refinance Index decreased 11.2 % and the Purchase Index fell 6.7%, both from the previous week. The unadjusted Purchase Index decreased 6.6% compared with the previous week and was 29.4% lower than the same week one year ago.
The four week moving average for the seasonally adjusted Market Index was up 0.4%; for the Purchase Index it was down 1.1% and for the Refinance Index it was up 0.7%. The refinance share of mortgage activity decreased to 82.4% percent of total applications from 83.1 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 5.8%.
The average rate for 30-year fixed-rate mortgages rose to 4.34% from 4.21% with points decreasing to 0.81 from 1.02, the first increase in the 30-year rate in six weeks. The rate for 15-year fixed-rate mortgages increased to 3.74% from 3.62%, with points decreasing to 1.00 from 1.06, also the first increase in six weeks.
The MBA did not release data on ARM rates.