<\/p>\n
The demand for home loans rebounded with a 7.1% increase for the week ending Oct. 24, according to the Mortgage Bankers Association (MBA). It’s a turnaround from a week ago when mortgage applications decreased by 0.3%.<\/p>\n
The surge comes as mortgage interest rates dropped to 6.19%, the lowest level in over a year for the week ending Oct. 23, according to Freddie Mac.<\/p>\n
The Market Composite Index, a measure of mortgage loan application volume, increased 7.1% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 7% compared with the previous week.<\/p>\n
The Refinance Index increased 9% from the previous week and was 111% higher than the same week a year ago. The seasonally adjusted Purchase Index increased 5% from one week earlier. The unadjusted Purchase Index increased 4% compared to the prior week and was 20% higher than the same week one year ago.<\/p>\n
The refinance share of mortgage activity increased to 57.1% of total applications from 55.9% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 8.9% of total applications.<\/p>\n
The Federal Housing Administration (FHA) share of total applications decreased to 20.5% from 21.8% the week prior. FHA loans are still being processed during the government shutdown, but applicants can expect delays in processing and closings.<\/p>\n
The Veterans Affairs share of total applications decreased to 13.4% from 13.5% the week prior. The USDA share of total applications decreased to 0.2% from 0.3% the week prior.<\/p>\n
“Mortgage rates decreased for the fourth consecutive week, with the 30-year fixed rate down to 6.30 percent, its lowest level since September 2024,” says Joel Kan<\/strong>, MBA\u2019s vice president and deputy chief economist. “This recent decline in rates spurred the second consecutive week of increased refinance activity, driven mainly by conventional refinance applications.”<\/p>\n