After increasing 6.2% the previous week, mortgage application volume fell 3.2% during the week ended Nov. 20, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.
Applications for refinances decreased 5%, while applications for purchases decreased 1%.
The MBA took into account the Veterans Day holiday in adjusting its figures.
On an unadjusted basis, purchase volume increased 5% and total volume increased 6% compared with the previous week.
Purchase volume was 24% higher compared with the same week one year earlier.
The refinance share of mortgage activity increased to 58.7% of total applications from 58.6% the previous week.
The increase in applications for refinances can be attributed to the decrease in mortgage rates. For the week ended Nov. 20, the average rate for a 30-year fixed-rate mortgage (FRM) with conforming loan balance ($417,000 or less) was 4.14%, down from 4.18% the previous week.
The average rate for a 30-year FRM with jumbo loan balance (greater than $417,000) was 3.99%, down from 4.05%.
The average rate for a 30-year FRM backed by the Federal Housing Administration (FHA) was 3.87%, down from 3.90%.
The average rate for a 15-year FRM was 3.39%, down from 3.40%.
The average rate for a 5/1 adjustable-rate mortgage (ARM) was 3.19%, up from 3.18%.
The ARM share of activity increased to 6.4% of total applications.
The average loan size for purchase applications reached a survey high at $303, 600.
Looking at volume by loan type, the FHA share was 13.7% of all applications – down from 14.4% the week prior. The Veterans Affairs share was 11.0%, down from 11.7% 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% of the U.S. mortgage market.