Mortgage application volume increased 5.4% on an adjusted basis during the week ended December 6, as the average rate for a 30-year, fixed-rate mortgage dipped to 6.67%, down from 6.69% the previous week, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
The results include an adjustment for the Thanksgiving holiday.
Applications for refinances increased 27% compared with the previous week and were up 42% compared with the same week one year earlier.
Applications for purchases decreased 4% compared with the previous week but were up 4% compared with the same week one year ago.
“Mortgage rates decreased again for the third consecutive week, with the 30-year fixed rate dipping to 6.67 percent,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “Applications increased 5 percent, driven by a 27-percent surge in refinance activity, as borrowers with higher rates acted on the chance to lower their payments. VA refinance applications were up 85 percent from the previous week, matching some of the larger swings in VA activity reported in recent months.
“Purchase applications remained relatively strong and have shown annual gains in all but one week over the past three months,” Kan adds. “In addition to lower rates, purchase activity continues to be supported by sustained housing demand and inventory that continues to grow gradually in many markets.”
The refinance share of mortgage activity increased to 46.8% of total applications, up from 38.7% the previous week.
The adjustable-rate mortgage (ARM) share of activity decreased to 5.3% of total applications.
Photo: Scott Graham