US mortgage applications edge lower, MBA says

Applications for US home mortgages fell last week, data released on Wednesday showed.

The Mortgage Bankers Association (MBA) said its seasonally adjusted index of application activity, which covers home purchase demand and refinancing demand, declined 3.5% in the week ended 23 October.

The seasonally adjusted sub-index of refinancing applications slid 4%, while the index of loan requests for home purchases, a key indicator of home sales, fell 3%.

The refinance share of mortgage activity remained at 59.5% of total applications from the previous week, as the adjustable-rate mortgage share of activity declined to 6.6% of total applications.

Meanwhile, fixed 30-year mortgage rates increased from 3.95% to 3.98%.

"Between the recent TILA-RESPA regulatory change and the Columbus Day holiday, mortgage application volume has been more volatile than normal,” said Michael Fratantoni, chief economist for the MBA.

“However, that appears to be settling down somewhat."