Mortgage application volume increased for the first time in a month last week driven by more purchase activity.
The Mortgage Bankers Association’s market composite index was up 4.9% for the period ending Nov. 14, which included an adjustment for Veterans Day. The week before, loan application volume declined 0.9% on a seasonally adjusted basis.
The refinance gauge increased 1% week over week, while the purchase index rose 12% reaching its highest level since July, the Washington-based trade group said.
Refinance activity accounted for 61% of total applications, which is down two percentage points from the prior week, the MBA said. The adjustable-rate mortgage share decreased two basis points and represented 6.9% of all activity. Federal Housing Administration loan applications consisted of 9.9% of the volume, up three basis points week over week. The Veterans Affairs share increased five basis points, to 11.5% of total applications, while USDA applications were down one basis point, to 0.8%, of all mortgage loan applications.
All 30-year fixed rate mortgage products saw their average contract interest rates fall within the last week. A fixed 30-year mortgage was down one basis point, to 4.18%. The average interest rate for a 30-year jumbo mortgage loan decreased three basis points, to 4.1%. Lastly, interest rates for FHA-backed 30-year mortgages declined five basis points, to 3.85%.
Meanwhile, the MBA revealed that the average contract interest rate for a 15-year fixed mortgage held steady at 3.38%.
The MBA survey covers over 75% of all U.S. retail residential mortgage applications.