Mortgage applications slumped last week, reports MBA

NEW YORK ―Applications for U.S. home mortgages tumbled nearly 15 percent last week as demand for both refinancing and purchases evaporated, while interest rates climbed, an industry group said on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, dropped 14.9 percent in the week ended Oct 14.

The MBA’s seasonally adjusted index of refinancing applications slid 16.6 percent, while the gauge of loan requests for home purchases gave up 8.8 percent.

The refinance share of total mortgage activity fell to 77.6 percent of applications from 79.1 percent the week before.

Fixed 30-year mortgage rates averaged 4.33 percent, up 8 basis points from 4.25 percent.

The survey covers over 75 percent of U.S. retail residential mortgage applications, according to MBA.

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