Total mortgage application volume increased 0.2% on an adjusted basis during the week ended November 21, as rates crept up, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Applications for refinances decreased 6% from the previous week but were up 117% compared with the same week one year ago.
Applications for purchases increased 8% compared with the previous week and were up 20% compared with the same week one year ago.
The increase in purchase apps should be viewed in context: Nationwide, purchase volume is well below historical norms due to lack of affordability, low inventory and seasonal factors.
“Mortgage rates crept higher last week, with the 30-year fixed rate up to 6.4 percent, its highest level since early October,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “Despite these slightly higher rates, purchase applications increased over the week and remained at a stronger pace than a year ago, with increases across conventional and government purchase applications.”
“The government purchase index, which includes FHA, VA, and USDA applications, increased 9 percent and had the strongest week since 2023,” Kan says. “Despite slowing home-price growth and lower mortgage rates, affordability remains a challenge in many markets and government loan programs remain appealing to qualified buyers looking to purchase a home. The average purchase loan size decreased to its lowest level in two months.”
“Rates have increased by around 10 basis points over the past four weeks and given that many borrowers have been looking to capitalize on rate drops, refinance applications last week declined almost 6 percent to the slowest weekly pace since September,” Kan adds.
The refinance share of mortgage activity decreased to 53.4% of total applications, down from 55.4% the previous week.
The adjustable-rate mortgage (ARM) share of activity increased to 7.9% of total applications.
Photo: Romain Dancre