The rate spike which took place last Friday means application volume for this current week will be horrendous, says Brent Nyitray, director of capital markets at iServe Residential Lending. Interest rates have remained at those high levels since then. The 30-year fixed-rate mortgage gained 17 basis points in the week ended Nov. 12 to 4.22%, according to Zillow Mortgage Marketplace.
Fridays rate movement was a result of the strong employment numbers reported that day, coming on top of stronger-than-expected growth in the gross domestic product reported on Thursday, says Zillow chief economist Stan Humphries as well as HSH.com vice president Keith Gumbinger.
HSH.coms data have rates 11 basis points higher as of the afternoon of Nov. 12 over the previous week.
Refinance applications declined 2% from the previous week, while purchase applications were down 1% on a seasonally adjusted basis, according to the Mortgage Bankers Association. Purchase applications were down 6% on an unadjusted basis for the same week one year ago.
Refis made up 66% of applications submitted during the week.
The average contract rate for the 30-year conforming FRM (MBA defines this as a loan with a balance of $417,500 or under) for the survey period is 4.44%, a gain of 12 basis points from the previous week. Federal Housing Administration-insured loans had an average contract rate for the week of 4.16%, an increase of nine basis points.
The rate for the jumbo 30-year FRM is up 11 basis points to 4.48% and the rate for the 15-year FRM is up eight basis points to 3.52%.
The average contract rate for the 5/1 adjustable-rate mortgage increased three basis points to 3.11%. ARMs made up just 7% of the weeks applications.