Rates Inching Closer to 8%


Freddie Mac said the average rate on 30-year fixed-rate mortgages increased to 7.93% for the week ended October 22, up from 7.85% from the previous week.

In the 15-year sector, fixed-rate mortgages increased to 7.53% from the prior week's 7.45%. A year ago, the rate was 6.34%.

The rate for one-year Treasury-indexed adjustable-rate mortgages averaged 6.30%, down from last week's average of 6.31%. A year ago, this rate was 5.37%.

Refi Index Drops

The Mortgage Bankers Association's refinancing index decreased to 396.3 for the week ending October 22, down from 412.2 the previous week.

Mortgage loan applications decreased 6.8% from the prior week and refinancings made up 20.2% of the total volume, decreasing from the previous week's 21.7%.

Meanwhile, the MBA's home purchase index increased to 277.3 from 262.7 the prior week.