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ew mortgage application data for the week ending September 27, 2024, shows a decline in overall loan volume. The Market Composite Index fell 1.3 percent on a seasonally adjusted basis and 1 percent unadjusted from the previous week.

    The Refinance Index dropped by 3 percent but remains 186 percent higher than the same period last year. In contrast, the Purchase Index rose 1 percent both seasonally adjusted and unadjusted, with activity 9 percent higher than the same week in 2023.

    According to Mike Fratantoni, MBA's Senior Vice President and Chief Economist, mortgage rates increased modestly due to solid economic growth and declining inflation. This led to a dip in refinance applications, though they remain nearly three times higher than last year.

    Fratantoni noted that purchase application activity is increasing, with buyers benefiting from rising inventory and slightly better affordability due to lower mortgage rates. Refinance activity accounted for 54.9 percent of total applications, down from 55.7 percent the previous week.

    The average interest rate for 30-year fixed-rate mortgages rose to 6.14 percent, while points increased to 0.61. The effective rate also increased across various loan types, including FHA-backed and jumbo loans.