Mortgage Applications Rise for First Time in 7 Weeks as Interest Rates Fall

Mortgage applications increased 3.4% from one week earlier, as interest rates on home loans declined for the second week in a row, giving buyers some relief.For the week ending Oct. 23, the Mortgage Bankers Association's Market Composite Index—a measure of total mortgage loan application volume—increased 3% on a seasonally adjusted basis from one week earlier.The Purchase Index, which measures the volume of mortgage applications to purchase a single-family home, increased 4% from one week earlier after seasonal adjustment, though purchase applications were down 18% from a year ago.According to MBA calculations, the average contract interest rate for 30-year fixed mortgages with conforming loan balances is 7.37%, a slight decrease from last week's rate of 7.41%.Mortgage rates dropped to 7.32% last week from 7.4% the week before, according to a separate survey from Freddie Mac.“Mortgage rates declined for the second week in a row, with the 30-year fixed rate decreasing to 7.37%, the lowest in three weeks. The decline in rates gave borrowers some relief, with applications rebounding slightly, particularly conventional applications,” said Joel Kan, CMB, MBA’s vice president and deputy ...