MBA: Mortgage Application Volume Continues To Fall

Mortgage application volume decreased 1.8% for the week ending Nov. 8, compared to the previous week, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.

The MBA revised down the application volume figure provided in the previous week's report. Although it had initially reported that application volume was down 7%, for the week ending Nov. 1, that figure has since been revised to 2.8%.

On an unadjusted basis, application volume for the week ending Nov. 8 decreased 3% compared with the previous week.

Applications for refinancing also continued to decline, dropping about 2% compared to the previous week. The refinance share of mortgage activity remained unchanged at 66% of all volume.

The Purchase Index, which measures application volume waiting in the pipeline, decreased 1% from one week earlier, on an adjusted basis, and decreased 3% on an unadjusted basis. The unadjusted Purchase Index was 6% lower than the same week one year ago, the MBA reports.

Application volume continues to drop for one main reason: rising interest rates.

According to the MBA, the average interest rate for a 30-year fixed-rate mortgage with conforming loan balance ($417,000 or less) increased to 4.44% – the highest level in a month – from 4.32% the week prior.

The average interest rate for a 30-year fixed-rate mortgage with jumbo loan balance (greater than $417,000) increased to 4.48% – also the highest level in a month – up from 4.37% the week prior.

The average interest rate for a 30-year fixed-rate mortgage backed by the Federal Housing Administration increased to 4.16% from 4.07%.

The average interest rate for 15-year fixed-rate mortgage increased to 3.52% – the highest level in a month – from 3.44%.

The average interest rate for a 5/1 adjustable-rate mortgage (ARM) increased to 3.11% from 3.08%.

The ARM share of activity increased to 7% of total applications.

For more, click here.

LEAVE A REPLY

Please enter your comment!
Please enter your name here