MBA: Mortgage Applications Decrease For Third Consecutive Week

Mortgage application volume decreased for a third week in a row during the week ended Nov. 4, falling 1.2% compared with the previous week, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey.

Applications for refinances decreased 3%, while applications for purchases increased 1%.

On an unadjusted basis, total application volume decreased 2% compared with the previous week. Applications for purchases decreased 1% on an unadjusted basis and increased 11% compared with the same week one year earlier.

The refinance share of mortgage activity decreased to 62.3% of total applications from 62.7% the previous week.

The dip in applications for refinances was due, in part, to rising interest rates. The average rate for a 30-year, fixed-rate mortgage (FRM) was 3.77%, up from 3.75%.

The average rate for a 30-year jumbo FRM was 3.75%, up from 3.74%.

The average rate for a 30-year FRM backed by the Federal Housing Administration (FHA) was 3.61%, up from 3.59%.

The average rate for a 15-year FRM was 3.03%, down slightly from 3.04%.

The average rate for a 5/1 adjustable-rate mortgage (ARM) was 2.92%, down from 2.97%.

All rates are based on closings. The survey covers about 75% of the market.

The ARM share of activity increased to 4.5% of total applications.

About 11.6% of applications were for loans backed by the FHA – up from 11.1% the week prior. The Veterans Affairs share of total applications was 12.3%, down from 12.4%. The U.S. Department of Agriculture share of total applications remained unchanged at 0.7%.

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