One of the deadliest hurricanes on record in the United States contributed to a steep drop in mortgage demand, as the highest mortgage rates in more than 20 years coincide with the storm.
The Mortgage Bankers Association says total mortgage application volume fell to the lowest level in more than a decade.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances increased to 6.05% from 6.52% with points decreasing to 0.95 from 1.15 for loans with a 20% down payment.
Over the past year, the current rate has more than doubled and has increased 130 basis points in the last seven weeks.
For the week, the volume of refinances was 18% lower than the same week a year ago. Refinancing accounted for 29% of total applications last week, down from 30.2% the previous week.
The number of mortgage applications to purchase a home dropped in the last week.
There was an impact from Hurricane Ian's arrival in Florida. On a non-seasonally adjusted basis, the number of applications in Florida fell by a third.
With higher interest rates making a already pricey housing market even more expensive, more and more people are choosing to take out a variable-rate mortgage. The share of activity increased to 11.8%, up from 8.5% a month ago and 3% at the beginning of the year.
All bets are off at the end of the week when the employment report is released, according to a survey from Mortgage News Daily. Mortgage rates could move either way depending on how the Federal Reserve reacts to the results.
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