MBA: Mortgage Application Volume Fell 1.3%

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After decreasing the previous two weeks, mortgage application volume fell again during the week ended Nov. 6 – dipping 1.3% on an adjusted basis, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.

On an unadjusted basis, volume decreased 2.0% compared with the previous week.Â

Applications for refinances decreased 2.0%, due to higher rates, while applications for purchases increased 0.1%.

On an unadjusted basis, applications for purchases decreased 3.0% compared with the previous week but were 18.0% higher than the same week one year ago.

The refinance share of mortgage activity increased to 59.8% of total applications from 59.7% the previous week.

Interest rates increased on news that the Fed may be raising rates come December. The average rate for a 30-year fixed-rate mortgage (FRM) with conforming loan balance ($417,000 or less) was 4.12%, up from 4.01% the previous week.

The average rate for a 30-year FRM with jumbo loan balance (greater than $417,000) was 4.04%, up from 3.90%.

The average rate for a 30-year FRM backed by the Federal Housing Administration (FEH) was 3.87%, up from 3.81%

The average rate for a 15-year FRM was 3.35%, up from 3.24%.

The average rate for a 5/1 adjustable-rate mortgage (ARM) was 3.22%, up from 3.12%

The adjustable-rate mortgage (ARM) share of activity decreased to 6.6% of total applications.

Looking at volume by loan type, the FHA share was 14.1% of all applications – up from 13.2% the week prior. The Veterans Affairs share was 10.9%, down from 11.9% the week prior. The U.S. Department of Agriculture share of total applications remained unchanged at 0.7%.

All rates are based on closings. The survey covers about 75.0% of the mortgage market.

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