By in Eye on Housing
Interest rates remained above seven and a half percent for the second consecutive week. The combination of increased rates and low existing for-sale inventory have continued to dismay potential buyers as the purchase index remained historically low. The seasonally adjusted purchase index was 19.4% lower than one year ago while the seasonally adjusted refinancing index was 8.8% lower than one year ago.The refinance share of mortgage activity fell from 31.7% to 31.6% over the week. The adjustable-rate mortgage (ARM) share of activity rose to 9.2% from 8%, the highest share since November 2022. The average loan size for purchases was $421,600 at the start of October, down from $414,200 over the month of September. The average loan size for refinancing decreased from $254,700 over the month of September to $245,100. The average loan size for an ARM was down at start of October to $817,100 while the average loan size for a FRM fell to $320,200.