After dipping 1.3% the previous week, mortgage application volume increased 6.2% on an adjusted basis during the week ended Nov. 13, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.
The results were adjusted to account for the Veterans Day holiday.
On an unadjusted basis, volume decreased 6.0% compared with the previous week.
Applications for refinances increased 2.0% while applications for purchases increased a surprising 12%.
The MBA notes that the average loan size for purchase applications rose to a survey high of $301,200.
On an unadjusted basis, applications for purchases decreased 3% compared with the previous week but were 19% higher compared with the same week one year ago.
The refinance share of mortgage activity decreased to 58.6% of total applications from 59.8% the previous week.
Fixed mortgage interest rates continued to rise for a third straight week. The average rate for 30-year fixed-rate mortgage (FRM) with conforming loan balance ($417,000 or less) was 4.18%, up from 4.12% the previous week.
The average rate for a 30-year FRM with jumbo loan balance (greater than $417,000) was 4.05%, up from 4.04%.
The average rate for a 30-year FRM backed by the Federal Housing Administration was 3.90%, up from 3.87%.
The average rate for a 15-year FRM was 3.40%, up from 3.35%.
The average rate for a 5/1 adjustable-rate mortgage (ARM) was 3.18%, down from 3.22%.
The ARM share of mortgage activity decreased to 6.3% of total applications.
Looking at volume by loan type, the FHA share was 14.4% of all applications – down from 14.1% the week prior. The Veterans Affairs share was 11.7%, up from 10.9% 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% of the U.S. mortgage market.