The level of home loan applications fell during the week ending October 19, but the significant decline was likely due to an upward adjustment in the previous week's figure.
Mortgage records showed that applications dropped 12 percent compared to the week previous, while the Refinance Index dropped 13 percent during that time, according to the Mortgage Bankers Association's Weekly Mortgage Applications Survey. The Purchase Index declined 8 percent, as well. The reason for the sharp declines was partially due to the measurement adjustment, which occurred because of the Columbus Day holiday.
The share of refinance activity fell one percentage point to 81 percent, the report explained. Total refinances for adjustable-rate mortgages rose to 4 percent of all loan applications during the week.
Improvement in the level of mortgage applications may continue in the near future, as property data from the Department of Housing and Urban Development showed housing completions rose in September. The total rate of completions jumped 0.4 percent during the month to a seasonally-adjusted annual rate of 683,000, compared to August's figure of 680,000.