Mortgage Applications Rise 3.4% as 30-Year Rate Slips to 7.37%

U.S. mortgage applications rose 3.4% last week as borrowing costs eased for a second straight week, offering a small lift to a housing market still constrained by high rates.

The Mortgage Bankers Association’s seasonally adjusted measure increased in the week ending October 23. The average contract rate on 30-year fixed mortgages with conforming balances of $832,750 or less fell to 7.37% from 7.41%.

Applications to buy a home increased 4% from the previous week, but remained 18% below the same week a year earlier. Refinance applications rose 3% for the week and were down 61% from a year earlier.

The share of applications for adjustable-rate mortgages climbed to 11.3%, its highest level in more than a year. Those loans can offer lower initial payments, but their rates can change later.

The quoted 30-year survey rate applies to loans at an 80% loan-to-value ratio. Points, including the origination fee, rose to 0.76 from 0.75. It is a survey average for last week, not a guaranteed rate available to every borrower today.

The weekly figures were released Wednesday by the Mortgage Bankers Association. Reports from CNBC and FinanzaOnline also described the rebound in applications.