The volume of mortgage applications in the US inched lower by 0.3% from the previous week on the period ending October 17th, marking the fourth consecutive weekly decline. The muted movement occurred despite a 5bps drop in benchmark mortgage rates, tracking the decline in longer-maturity Treasury yields amid growth concerns and the outlook of rate cuts by the Fed. “The refinance index increased 4%, driven by a 6% increase in conventional refinances and a 12% increase in FHA refinance applications, as borrowers remain attentive to these opportunities to lower their monthly mortgage payment. VA refinances bucked the trend and were down 12%,” said Joel Kan, MBA economist. “ARM applications increased 16% over the week, which pushed the ARM share to 11%, with the ARM rate more than 80bps lower than the 30-year fixed rate,” he added. In turn, the index measuring applications to purchase a new home fell 5% on the week.