Refi and Purchase Activity Drop in Latest MBA Application Survey









Mortgage applications decreased last week as both refinance and purchase activity fell.

The Mortgage Bankers Association’s market composite index was down 4.3% on a seasonally adjusted basis for the period ending Nov. 21. Loan application volume increased 4.9% the week before, which included an adjustment for Veterans Day.

The refinance index dropped 4% week over week, while the purchase index plunged 5% during this time period, the Washington-based trade group said.

Refinances accounted for 63% of total applications, up two percentage points from the previous week. The adjustable-rate mortgage share of activity increased one basis point, to 7%, of all activity. Federal Housing Administration applications made up 9.4% of the volume, which is down five basis points compared to a week earlier. The Veterans Affairs share decreased 12 basis points, to 10.3%, while USDA applications held steady at 0.8% of all mortgage loan applications.

The average contract interest rate for a 30-year and 15-year fixed mortgage was both down three basis points respectively at 4.15% and 3.35%. FHA-backed mortgages saw average 30-year fixed rates rise five basis points, to 3.9%. Lastly, the average 30-year fixed rate jumbo loan remained unchanged at 4.1%.

The MBA survey covers over 75% of all U.S. retail residential mortgage applications.

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