Mortgage application volume fell 27.6% on a seasonally adjusted basis for the week ending Oct. 9, reversing the rush of the previous week caused by the TILA-RESPA Integrated Disclosure rule becoming effective, according to the Mortgage Bankers Association.
Application volume fell 27% on an unadjusted basis, the MBA said.
In a news release, MBA chief economist Mike Fratantoni attributed the sharpness of the decrease to the Oct. 3 TRID implementation.
"Application volume plummeted last week in the wake of the implementation of the new TILA-RESPA integrated disclosures, which caused lenders to significantly revamp their business processes, and as a result dramatically slowed the pace of activity," he said.
"The prior week's results evidently pulled forward much of the volume that would have more naturally taken place into this week."
Refinance applications as a share of total application activity rose to 61.2% from 57.4% in the previous week. The purchase index decreased 34% on an adjusted and unadjusted basis. Purchase apps were 1% lower from the year before on an unadjusted basis.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances remained unchanged at 3.99% from the previous week. The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances also remained unchanged, at 3.89%.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased two basis points to 3.82%, while the average contract interest rate for 15-year fixed-rate mortgages fell four basis points to 3.2%.
