Mortgage application volume decreased 5.2% on an adjusted basis during the week ended November 14, as rates increased, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Applications for refinances fell 7% compared with the previous week but were up 125% compared with the same week one year ago.
Applications for purchases decreased 2% but were up 26% compared with the same week one year ago.
“Mortgage rates increased for the third consecutive week, with the 30-year fixed rate inching higher to its highest level in four weeks at 6.37 percent,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “Application activity over the week was lower, with potential homebuyers moving to the sidelines again, although there was a small increase in FHA purchase applications. Refinance applications decreased as borrowers remain sensitive to even small increases in rates at this level. The overall average loan size across both purchase and refinance applications dipped to its lowest level since August of this year, driven by another drop in the ARM share.”
The refinance share of mortgage activity decreased to 55.4% of applications, down from 55.6% the previous week.
The adjustable-rate mortgage (ARM) share of activity decreased to 7.5% of total applications.
Photo: Annika Wischnewsky