Residential mortgage applications reached their highest level in more than six months, according to the Weekly Mortgage Applications Survey released by the Mortgage Bankers Association (MBA).
For the week ending Nov. 19, MBA's Market Composite Index increased 2.1% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the index increased 1.1% compared with the previous week.
The Refinance Index decreased 1% from the previous week, and it is now at its lowest level since the end of June. The seasonally adjusted Purchase Index increased 14.4% from one week earlier. On a seasonally adjusted basis, this is the highest Purchase Index recorded since the week ending May 7. The unadjusted Purchase Index increased 9.6% compared with the previous week and was 7.4% lower than the same week one year ago.
‘The increase in purchase applications last week aligns with other incoming data suggesting that consumers are feeling somewhat more confident with their financial situation,’ says Michael Fratantoni, MBA's vice president of research and economics. ‘While the increase was magnified somewhat by the comparison to the holiday week, the level of purchase applications on a seasonally adjusted basis is now at its highest level since the expiration of the home buyer tax credit.’
The four-week moving average for the seasonally adjusted Market Index is down 3.2%. The four-week moving average is up 4% for the seasonally adjusted Purchase Index, while this average is down 4.8% for the Refinance Index. The refinance share of mortgage activity decreased to 78.6% of total applications from 80.3% the previous week. The adjustable-rate mortgage share of activity remained constant at 5.3% of total applications.