Today's Weekly Mortgage Applications Survey, a report released by the Mortgage Bankers Association, showed a decrease in mortgage applications for the week ending October 21, as compared to the previous week. The Market Composite Index, a measure of mortgage loan application volume, was 679.1. On a seasonally adjusted basis, this indicates mortgage loan application volume decreased 7.9% as compared to the week ending October 14.

The seasonally-adjusted Purchase Index decreased by 7.4% to 466.4, and the Refinance Index was down 8.5% to 1916.8 from one week earlier.

"The purchase market continues to benefit from strong job formation and long-term mortgage rates that have remained within range of 40-year lows," says Bob Walters, Chief Economist of Loans. "Rising short-term rates have begun to hit consumers in their pocket books. As rates on adjustable rate mortgages and home equity lines of credit begin to adjust upwards, many homeowners are refinancing into fixed rate programs. We are also seeing a significant amount of debt consolidation activity as a result of rising credit card rates."

Publish Date: 10/26/2005