MBA: Mortgage Applications Decreased 1.1%

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After increasing 1.2% the previous week, mortgage application volume decreased 1.1% on an adjusted basis during the week ended Dec. 11, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.

Applications for refinances increased 1.0%, while applications for purchases decreased 3.0%.

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

On an unadjusted basis, applications for purchases decreased 7.0% compared with the previous week but were 34% higher compared with the same week one year ago.

The refinance share of mortgage activity increased to 60.7% of total applications from 58.7% the previous week.

Fixed mortgage rates were more or less flat compared with the previous week. The average rate for a 30-year fixed-rate mortgage (FRM) with conforming loan balance ($417,000 or less) remained unchanged at 4.14%.

The average rate for a 30-year FRM with jumbo loan balance (greater than $417,000) was 4.01%, down slightly from 4.02%.

The average rate for a 30-year FRM backed by the Federal Housing Administration (FHA) was 3.90%, down slightly from 3.91%.

The average rate for a 15-year FRM was 3.38%, down slightly from 3.39%.

The average rate for a 5/1 adjustable-rate mortgage (ARM) was 3.25%, up from 3.23%.

The ARM share of activity decreased to 6.0% of total applications.

Looking at volume by loan type, the FHA share was 14.0% of all applications – unchanged from the previous week. The Veterans Affairs share was 11.2%, up from 10.8% the week prior. The U.S. Department of Agriculture share of total applications was 0.6%, down from 0.7% the previous week.

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

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