Mortgage application volume declined in the week ending October 12, despite mortgage rates remaining near record lows, according to the Mortgage Bankers Association.
MBA's Weekly Mortgage Applications Survey showed total volume declined 4.2 percent on a seasonally adjusted basis from the previous week. The Refinance Index also dropped, bringing the refinance share of applications down from 83 to 82 percent.
The adjustable-rate mortgage share of activity went unchanged at 4 percent, while to share of Home Affordable Refinance Program applications increased to 22 percent from 18 percent in the past week.
Meanwhile, requests for purchases jumped 1 percent from a week earlier, bringing the Purchase Index to its highest level since early June.
Despite the decline in mortgage applications, current market conditions still present affordable buying and refinancing opportunities. According to Freddie Mac's latest Primary Mortgage Market Survey, both 15- and 30-year fixed-rate mortgages remain near all-time lows despite seeing slight increase in the week ending October 11.
However, many potentially borrowers are still unable to obtain a mortgage or refinance, as lending standards still remain tight.