Recent mortgage records showed that loan applications declined for the second consecutive week after rising to its highest level since 2009.
The Mortgage Bankers Association's Weekly Mortgage Applications Survey for the week ending October 12 revealed that total home loan applications fell more than 4 percent when compared to the previous week.
Additionally, the Refinance Index dropped 5 percent when compared to the same period, the report explained. Despite the declines, the Purchase Index actually rose 1 percent week-over-week. That brought the indicator to its strongest level since June.
The share of refinances in total mortgage activity dropped one percentage point, to a total of 82 percent, according to the MBA. Additionally, adjustable-rate mortgages comprised 4 percent of all loan applications. Refinances involved in the Home Affordable Refinance Program comprised a total of 22 percent, which was slightly higher than the previous week's 18 percent.
Real estate records from the federal government showed that home value improvements led to homeowner equity increases. According to the government's September edition of the Housing Scorecard, equity reached its highest level since the latter half of 2008.