U.S. mortgage applications dropped 11.9% in the week ended October 18
U.S. mortgage applications dropped 11.9% in the week ended October 18, after edging up 0.5% in the prior week. This breaks a string of three consecutive weekly gains, though the index is still up 53.6% y/y. Most of the weakness was in the refi index, which fell 17.1% after cumulative gains of 27.6% over the prior three weeks. The purchase index declined another -3.6% following a -4.1% slide in the prior week, and is a third straight weekly drop. The 30-year fixed rate rose back over 4% to 4.02% from 3.92% in the prior week. It had been sub 4% from late September to October 11. It was at 5.11% a year ago, so it's still very attractive. The 5-year ARM slid to 3.29% from 3.37%, and was at 4.47% a year ago.