In response to falling mortgage rates, mortgage application volume jumped 3.0% during the week ended November 17, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
The average rate for a 30-year, fixed-rate mortgage, based on closings, was 7.41%, down from 7.61% the previous week, according to the MBA’s data.
As a result, applications for refinances increased 2% compared with the previous week. However, applications for refinances were down 4% compared with the same week one year ago.
Applications for purchases increased 4% compared with the previous week but were down 1% compared with the same week one year ago.
“U.S. bond yields continued to move lower as incoming data signaled a softer economy and more signs of cooling inflation. Most mortgage rates in our survey decreased, with the 30-year fixed mortgage rate decreasing to 7.41 percent, the lowest rate in two months,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement.
“Mortgage applications increased to their highest level in six weeks, but remain at very low levels. Purchase applications were up almost four percent over the week, on a seasonally adjusted basis, as both conventional and government purchase loans saw increases. The average loan size on a purchase application was $403,600, the lowest since January 2023. This is consistent with other sources of home sales data showing a gradually increasing first-time homebuyer share.
“Refinance applications increased 1.6 percent last week,” Kan adds, “but the level of refinances continues to be well below historical averages, given that most borrowers already have a rate well below current market rates.”
The refinance share of mortgage activity increased to 32.4%, up from 31.9% the previous week.
The adjustable-rate mortgage (ARM) share of activity decreased to 8.3% of total applications.
Photo: Roger Starnes Sr