Mortgage applications declined for the third consecutive week as fewer borrowers are choosing to refinance due to rising interest rates.
Loan application volume fell for the period ending Nov. 7 by 0.9% compared to a week earlier, according to data from the Mortgage Bankers Association. Last week, the market composite index was down 2.6% on a seasonally adjusted basis.
The refinance gauge dropped 2% week over week, while the purchase index rose 1% during this time period, the Washington-based trade group said.
The refinance share of mortgage activity remained at 63% of total applications. The adjustable-rate mortgage share decreased to 7.1% of all applications, its lowest level since January. Federal Housing Administration loan applications accounted for 9.6% of all mortgage activity, while Veterans Affairs applications represented 11% and the USDA share was 0.9%.
The average contract interest rate for a 30-year fixed mortgage increased two basis points, to 4.19%. A 30-year mortgage backed by the FHA was up to 3.9% from 3.84% the week before. Both 30-year jumbo mortgage loans and 15-year fixed mortgage saw its average contract interest rates remain unchanged from the previous week at 4.13% and 3.38%, respectively.
The MBA’s weekly survey covers more than 75% of all U.S. retail residential mortgage applications.