Mortgage applications decreased 2.8% from one week earlier, according to data from the Mortgage Bankers Association‘s (MBA) Weekly Mortgage Applications Survey for the week ending November 12.
The Market Composite Index, a measure of mortgage loan application volume, decreased 2.8 on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 4% compared with the previous week. The Refinance Index decreased 5% from the previous week and was 31% lower than the same week one year ago. The seasonally adjusted Purchase Index increased 2% from one week earlier. The unadjusted Purchase Index decreased 2% compared with the previous week and was 6 percent lower than the same week one year ago.
“Refinance applications decreased for the seventh time in eight weeks, as mortgage rates moved higher after two weeks of declines,” states Joel Kan, MBA’s associate vice president of economic and industry forecasting. “Activity has been particularly sensitive to rate movements, and last week’s decline was driven by a drop in conventional and FHA refinance applications, which offset an increase in VA refinance applications. All mortgage rates in MBA’s survey increased, with the 30-year fixed rate climbing to 3.2 percent.”
“Purchase applications increased for both conventional and government loan segments, as housing demand continues to show resiliency at a time – late fall – when home buying activity typically slows,” Kan adds. “The second straight increase in purchase applications suggests that stronger sales activity may continue in the weeks to come. Despite elevated demand, purchase applications were 5.7 percent lower than a year ago.”
The refinance share of mortgage activity decreased to 62.9% of total applications from 63.5% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 3.2% of total applications.
The FHA share of total applications increased to 8.9% from 8.8% the week prior. The VA share of total applications increased to 10.8% from 10.2% the week prior. The USDA share of total applications remained unchanged from 0.5% the week prior.