Mortgage application volume fell 4.0% on an adjusted basis during the week ended Nov. 2, as the average rate for a 30-year increased to 5.15%, up from 5.11%, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.
The drop follows a decrease of 2.5% the previous week. It was the lowest volume level since December 2014.
Applications for refinances fell 3% while applications for purchases decreased 5% from one week earlier.
On an unadjusted basis, total volume decreased 2% compared with the previous week. Applications for purchases decreased 1% and were 0.2% lower compared with the same week one year earlier.
“Rates increased slightly last week, as various job market indicators showed a bounce back in job gains and an acceleration in wage growth in October,” says Joel Kan, associate vice president of economic and industry forecasts for the MBA, in a statement. “The survey’s 30-year fixed-rate, at 5.15 percent, was the highest since April 2010.”
“The purchase index declined to its lowest level since November 2016, but remained only slightly below the same week a year ago,” Kan adds. “It’s evident that housing inventory shortages continue to impact prospective homebuyers this fall.”
The refinance share of mortgage activity decreased to 39.1% of total applications, down from 39.4% the previous week.
The adjustable-rate mortgage (ARM) share of activity increased to 7.8% of total applications.
As of the week ended Nov. 5, the average rate for a 15-year fixed-rate mortgages remained unchanged at 4.55%.
The average rate for a 5/1 ARM was 4.36%, up from 4.33%.
