Applications for mortgages to purchase a home or refinance each fell for a second week, marking a swift reversal of what had been a hopeful signal of a revival in the US housing market.
The Mortgage Bankers Association’s index of home-purchase purposes declined 1.2% in the week ended Oct. 3, whereas a gauge of refinancing fell 7.7%. Both dropped again to ranges seen in early September, when mortgage charges have been on their option to a one-year low.
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A metric that mixes the 2 purposes measures fell 4.7% after plummeting 12.7% in the prior week, marking the largest back-to-back declines since April.
While the 30-year fastened contract price fell barely to six.43%, the prior week’s leap was sufficient to spook potential consumers and owners seeking to lock in decrease borrowing prices. That’s stopped an early restoration in housing activity and threatens to delay the market’s years-long slumber.
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The MBA survey, which has been performed weekly since 1990, makes use of responses from mortgage bankers, business banks and thrifts. The information cowl greater than 75% of all retail residential mortgage purposes in the US.
