The Market Composite Index, a measure of mortgage loan application volume by the Mortgage Bankers Association’s (MBA) weekly survey, decreased 13.9% month-over-month on a seasonally adjusted (SA) basis due to higher mortgage rates. This decline was reflected in both the Purchase and Refinance Indices, which fell by 4.4% and 23%, respectively, according to analysis from the National Association of Home Builders. However, compared to October 2023, the Market Composite Index is up by 39%, with the Purchase Index seeing a slight 1.9% increase and the Refinance Index higher by 149.9%.
The average 30-year fixed mortgage rate reversed its downward trajectory with an increase of 36 basis points (bps), following volatility in the ten-year Treasury yield. This brought the rate back to around the same level as it was in August at 6.53%. However, compared to its peak last October, the current rate is 125 bps lower.
The average loan size for the total market (including purchases and refinances) was $390,225 on a non-seasonally adjusted (NSA) basis, a decrease of 2.6% from September. Purchase loans grew by 2.1% to an average of $448,675, while refinance loans declined by 11.3% to $323,750. Adjustable-rate mortgages (ARMs) saw a modest decrease of 3.4% in average loan size from $1.19 million to $1.15 million.
