The Market Composite Index decreased by 4.6 percent on a seasonally adjusted basis for the week ending Oct. 20 from one week earlier. However, on an unadjusted basis, the index was up by six percent compared to the previous week. The seasonally adjusted Purchase Index was also down by six percent from one week earlier, while the unadjusted index was up by four percent and was 10 percent higher than the same week one year ago. The Refinance Index dipped by three percent from the previous week, but the refinance share of mortgage activity increased to 49.5 percent of total applications from 48.6 percent the previous week.
Among the federal programs, the FHA share of total applications decreased to 9.8 percent from 10.4 percent the week prior, the VA share of total applications decreased to 10.1 percent from 10.5 percent and the USDA share of total applications decreased to 0.7 percent from 0.8 percent the week prior.
“Rates increased late last week as the market responded to news of a Senate budget plan which may positively impact tax reform progress and more speculation around the future leadership of the Federal Reserve,” said Joel Kan, MBA’s Associate Vice President for Industry Surveys and Forecasting.
Separately, the Federal Housing Finance Agency’s (FHFA) latest House Price Index reported a 0.7 percent increase in house from July into August. From August 2016 to August 2017, house prices increased by 6.6 percent. For the nine census divisions, seasonally adjusted monthly price changes from July to August ranged from a 0.1 percent decline in the New England Division to a 1.4 percent rise in the Pacific Division, while all divisions recorded positive changes on a 12-month measurement, most notably a 9.3 percent spike in the Pacific Division.