The recent spike in mortgage interest rates reduced home purchase application activity last week, contributing to a 10.1% decline in total activity, according to the Mortgage Bankers Association.
The MBA's Weekly Mortgage Applications Survey for the week ending Sept. 20 found that the refinance index decreased 15% from the previous week, but remained 104% higher than the same week one year ago.
Meanwhile, the seasonally adjusted purchase index decreased 3% from one week earlier; on an unadjusted basis it was down 4%.
This represents a change in direction for the purchase index. While mortgage rates rose during the seven-day period ended Sept. 13, purchase applications were up 6% on a seasonally adjusted basis from the prior week.