Analysis
Application counts show demand for loans, rather than completed home sales. Higher borrowing costs increase the monthly payment on a new loan of the same size.
Borrowing costs rise
The Mortgage Bankers Association’s average 30-year fixed mortgage rate increased 0.19 percentage point to 7.49% in the week ended October 2. Reuters reported the figures on October 7; the rate was last higher in November 2023.
Applications decline
Total applications fell 4.2% from the previous week. MarketWatch reported a 2.1% decrease in purchase applications and a 7.5% fall in refinancing activity. Those measures describe requests for financing; they do not establish how many transactions ultimately closed.
Keep the surveys separate
The Wall Street Journal noted that MBA and Freddie Mac use different survey methods and observation windows. This is a separate release from the October 1 Freddie Mac report already covered here; the rates should not be treated as successive readings from one survey.
What remains uncertain
Figures are attributed to MBA through dated Reuters and Dow Jones reporting. The October 7 primary MBA release was not independently retrieved.