The Mortgage Bankers Association (MBA) reported that the MBA Refinancing Index rose to 2319.8 for the week ending Oct. 31, which is a rise of 0.3% relative to the 2311.8 level the previous week. Meanwhile, the Purchase Index increased significantly to 404.3 from 363.9 the previous week — which is an 11% hike from the prior week. The share of refinancings dropped to 51.1% from 53.3% a week ago.
Though the rise in the Refinancing Index was somewhat below Citigroup Global Markets’ expectations, it remained generally consistent with recent historical trends, wrote analysts at the firm in a report released this morning. The increase is attributed mostly to a drop in mortgage rates, which dipped by about five basis points to 10 basis points week-over-week.