Mortgage application volume plummeted 23 percent on a seasonally adjusted basis for the week ending September 26, the MBA reported today.
On an unadjusted basis, the home loan application index was off 23.4 percent compared to the prior week and 28.4 percent compared to the same period a year earlier.
The big fall was led by a whopping 34.7 percent slide in refinance applications (so much for that rally), a 14.1 percent drop in FHA lending, and a 9.7 percent slip in purchase apps.
Refinances made up just 44.0 percent of total applications, down from 51.6 percent a week earlier, as interest rates displayed limited movement.
The average 30-year fixed-rate mortgage fell one basis point to 6.07 percent, while the 15-year fixed slipped two basis points to 5.82 percent.
The average one-year adjustable-rate mortgage increased to 7.19 percent from 7.01 percent, pushing the ARM share of total activity fell to just 3.3 percent from 4.0 percent a week earlier.
Until things get sorted out in the way of a bailout or whatever other resolution is reached, look for things to be pretty muted in the lending sphere.
The weekly survey, conducted since 1990, covers about half of all retail residential mortgage applications, but doesn’t take into account multiple or declined apps.
(photo: psd)
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