U.S. Mortgage Applications Fall For Third Week: MBA

(RTTNews) - Mortgage applications for house purchase in the U.S. decreased for a third week in a row, survey results from the Mortgage Bankers Association showed on Wednesday.

The market composite index, which measures the house purchase mortgage loan application volume, dropped a seasonally adjusted 1.8 percent in the week ended October 10 following a 4.7 percent decline in the previous week, results of the MBA Weekly Mortgage Applications Survey revealed.

The refinance index fell 1 percent after an 8 percent slump in the previous week, the MBA survey showed. The purchase index decreased 3 percent following a 1 percent drop in the previous week.

The refinance share of mortgage activity rose to 53.6 percent of total applications from 53.3 percent in the previous week. The adjustable-rate mortgage (ARM) activity fell to 9.3 percent of total applications from 9.5 percent.

The 30-year fixed mortgage rate fell slightly to 6.42 percent from 6.43 percent. "Mortgage applications were lower than the week before, as conventional and VA applications saw declines," MBA's Vice President and Deputy Chief Economist Joel Kan said. "FHA applications saw a stronger week, and FHA refinance applications in particular increased 12 percent as the FHA rate stayed more than 10 basis points lower than the conventional fixed rate."

"Purchase applications declined for the third consecutive week but remained 20 percent ahead of last year's pace as improving inventory conditions in certain markets continue to maintain homebuyer interest," Kan added.