Mortgage application volume plummeted 10.8% during the week ended Nov. 1, as the average rate for a 30-year fixed-rate mortgage increased to 6.81%, up from 6.73% the previous week, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Applications for refinances tumbled 19% compared with the previous week but were still 48% higher compared with the same week one year ago.
Applications for purchases decreased 5% compared with the previous week but were up 2% compared with one year ago.
“Ten-year Treasury rates remain volatile and continue to put upward pressure on mortgage rates,” says Joel Kan, vice president and deputy chief economist, in a statement. “The 30-year fixed rate last week increased to 6.81 percent, the highest level since July.
“Applications decreased for the sixth consecutive week, with purchase activity falling to its lowest level since mid-August and refinance activity declining to the lowest level since May,” Kan adds. “The average loan size on a refinance application dropped below $300,000, as borrowers with larger loans tend to be more sensitive to any given changes in mortgage rates.”
The refinance share of mortgage activity decreased to 39.9% of total applications, down from 43.1% the previous week.
The adjustable-rate mortgage (ARM) share of activity increased to 7.0% of total applications.
Photo: Romain Dancre