Mortgage applications increased 1.5% over the past week from a week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending November 22, 2019.
This week’s results are being compared to the week of Thanksgiving 2018.
The Market Composite Index, a measure of mortgage loan application volume, increased 1.5% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 11% compared with the previous week.
The Refinance Index increased 4% from the previous week and was 314% higher than the same week one year ago. The seasonally adjusted Purchase Index decreased 1% from one week earlier. The unadjusted Purchase Index increased 4% compared with the previous week and was 55% higher than the same week one year ago.
“Mortgage rates stayed below 4% for the second straight week and borrowers responded positively, with mortgage applications rising 1.5% on the back of increases in both refinance and purchase activity,” said Joel Kan, MBA’s associate VP of economic and industry forecasting. “Refinances have been strong this month, but we are starting to see the average pace slow compared to the peak experienced in August through October.”
Added Kan, “The annual increase in refinance and purchase activity was even more prominent in this report because Thanksgiving was a week earlier last year. However, with roughly five weeks of reporting data left in 2019, the mortgage market is on track for its best year for originations since 2007.”
The refinance share of mortgage activity increased to 62.0% of total applications from 59.5% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 4.8% of total applications. The FHA share of total applications decreased to 11.7% from 13.0% the week prior. The VA share of total applications increased to 14.1% from 12.9% the week prior. The USDA share of total applications remained unchanged from 0.5% the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) decreased to 3.97% from 3.99%, with points decreasing to 0.30 from 0.33 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $484,350) decreased to 3.87% from 3.93%, with points increasing to 0.29 from 0.28 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.79% from 3.80%, with points decreasing to 0.23 from 0.32 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.38% from 3.40%, with points decreasing to 0.27 from 0.31 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
The average contract interest rate for 5/1 ARMs decreased to 3.42% from 3.51%, with points decreasing to 0.22 from 0.23 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
