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.