Mortgage application volume decreased 1.4% during the week ended November 28, as mortgage rates fell, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
On an adjusted basis, applications for refinances decreased 4% compared with the previous week but were up 109% compared with the same week one year ago.
Applications for purchases increased 3% compared with the previous week and were up 17% compared with the same week one year ago.
“Mortgage rates moved lower in line with Treasury yields, which declined on data showing a weaker labor market and declining consumer confidence,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “The 30-year fixed mortgage rate declined to 6.32 percent after steadily increasing over the past month.”
“After adjusting for the impact of the Thanksgiving holiday, refinance activity decreased across both conventional and government loans, as borrowers held out for lower rates,” Kan says. “Purchase applications were up slightly, but we continue to see mixed results each week as the broader economic outlook remains cloudy, even as cooling home-price growth and increasing for-sale inventory bring some buyers back into the market.”
The refinance share of mortgage activity decreased to 53.0% of total applications, down from 53.4% the previous week.
The adjustable-rate mortgage (ARM) share of activity increased to 8.0% of total applications.
Photo: Herve Margot