Mortgage Activity Declines in October as Mortgage Rates Increase
The Market Composite Index, a measure of mortgage loan application volume by the Mortgage Bankers Association’s (MBA) weekly survey, decreased 13.9% month-over-month on a seasonally adjusted (SA) basis due to higher mortgage rates.
This decline was reflected in both the Purchase and Refinance Indices, which fell by 4.4% and 23%, respectively. However, compared to October 2023, the Market Composite Index is up by 39%, with the Purchase Index seeing a slight 1.9% increase and the Refinance Index higher by 149.9%.
The average 30-year fixed mortgage rate reversed its downward trajectory with an increase of 36 basis points, following volatility in the 10-year Treasury yield. This brought the rate back to around the same level as it was in August at 6.53%. However, compared to its peak last October, the current rate is 125 bps lower.
NAHB Economist Catherine Koh provides more in this Eye on Housing post.
Latest from NAHBNow
Advocacy | Economics
Jun 18, 2025
Podcast: Mid-Year Update on Economic Indicators and Advocacy PrioritiesOn the latest episode of NAHB’s podcast, Housing Developments, COO Paul Lopez welcomes NAHB Chief Economist Dr. Robert Dietz and Chief Advocacy Officer Ken Wingert for a mid-year check in on key economic indicators and NAHB policy priorities driving home building for the rest of 2025.
Economics
Jun 18, 2025
Sharp Drop in Multifamily Production Brings Overall Housing Starts DownOverall housing starts decreased 9.8% in May to a seasonally adjusted annual rate of 1.26 million units, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.
Latest Economic News
Economics
Jun 18, 2025
Sharp Drop in Multifamily Production Brings Overall Housing Starts DownA sharp decline in multifamily production pushed overall housing starts down in May, while single-family output was essentially flat due to economic and tariff uncertainty along with elevated interest rates.
Economics
Jun 17, 2025
Builder Sentiment at Third Lowest Reading Since 2012In a further sign of declining builder sentiment, the use of price incentives increased sharply in June as the housing market continues to soften.
Economics
Jun 16, 2025
Permit Activity Weakens in April 2025Housing permits continued a downhill trend for the fourth month in a row, pointing to a broader residential construction slowdown for 2025. Over the first four months of 2025, the total number of single-family permits issued year-to-date (YTD) nationwide reached 320,259.