Mortgage application volume increased 4.9% during the week ended Nov. 14, compared to the previous week, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.
Applications for refinances increased 1%, on an adjusted basis, while applications for purchases jumped an impressive 12% to reach the highest level since July.
The results include an adjustment for the Veterans Day holiday.
On an unadjusted basis, the index decreased 7% compared with the previous week.
On an unadjusted basis, purchase applications were down 3% compared to the previous week and were 6% lower than the same week one year ago.
The refinance share of mortgage activity decreased to 61% of total applications from 63% the previous week.
The drop in applications for refinances is inexplicable considering mortgage interest rates decreased slightly compared to the previous week. The average rate for a 30-year fixed-rate mortgage (FRM) with conforming loan balance ($417,000 or less) was 4.18%, down slightly from 4.19% the week prior.
The average rate for a 30-year FRM with jumbo loan balance (greater than $417,000) was 4.10%, down from 4.13%.
The average rate for a 30-year FRM backed by the Federal Housing Administration (FHA) was 3.85%, down from 3.90%.
The average rate for a 15-year FRM remained unchanged from 3.38%.
The average rate for a 5/1 adjustable-rate mortgage (ARM) was 3.09%, up from 3.05% the previous week.
The ARM share of activity decreased to 6.9% of total applications.
The FHA share of total applications increased to 9.9% from 9.6%. The Veterans Affairs share of total applications increased to 11.5% from 11%. The U.S. Department of Agriculture share of total applications fell to 0.8% from 0.9%.