Mortgage application volume inched up 0.3% during the week ended November 24, as the average rate for a 30-year, fixed-rate mortgage decreased to 7.37%, down from 7.41% the previous week, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
This week’s results include an adjustment for the observance of the Thanksgiving holiday.
Applications for refinances decreased 9% compared with the previous week but were up 1% compared with the same week one year ago.
Applications for purchases increased 5% compared with the previous week and were down 19% compared with the same week one year ago.
“Mortgage rates decreased for the fourth time in five weeks, with the 30-year fixed rate dipping to 7.37 percent, the lowest level in 10 weeks,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “There was a slight increase in applications overall, driven by a five percent increase in purchase applications, but refinance applications decreased over the week.
“Rates have declined more than 50 basis points over the past six weeks, which has helped to spur a small increase in purchase applications, but activity last week was still around 20 percent lower than a year ago,” Kan adds. “The purchase market remains depressed because of the ongoing, low supply of existing homes on the market. Similarly, refinance activity will likely be muted for some time, even with the recent decline in rates, as many borrowers locked in much lower rates in 2020 and 2021.”
The refinance share of mortgage activity decreased to 30.6% of total applications, down from 32.4% the previous week.
The adjustable-rate mortgage (ARM) share of activity decreased to 8.1% of total applications.
Photo: Scott Graham