The Mortgage Bankers Association reported that the Refinancing Index dropped 22.1% to 2340.1, from 3005.5 the prior week.

A Citigroup Global Markets report this morning stated that the drop in the Index was likely the result of the following: 1) Columbus Day may have sent potential borrowers on early vacations last week; and 2) the average mortgage rate increased 20 basis points week-over-week. As of yesterday, Oct. 14, Citi said that primary mortgage rates were about 60 basis points below August peaks and approximately 80 basis points over the record lows seen in June.

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