Mortgage applications drop 3.5% this past week (including an adjustment made for Columbus Day) amidst fairly stable rates. The majority of these mortgage applications are buyers applying for a home loan, although a sizable portion of these applications are from homeowners looking to refinance.
While higher rates are typically to blame for a decrease in mortgage applications, experts believe the reason is the lending market’s volatility throughout October. In fact, mortgage applications actually jumped a whopping 11.8% two weeks ago, which suggests that this drop may actually just be a sign of a stabilizing lending market. October was a roller coaster for lenders, who dealt with speculation that the Fed may increase interest rates, a tumultuous global economy, and major regulatory changes to lending.
The average 30-year fixed mortgage stands at a historically low rate of 3.98%, which is just a slight increase from last week’s average of 3.95%.