Mortgage applications decreased 9.2% from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending November 29, 2019. This week’s results include an adjustment for the Thanksgiving holiday.
The Market Composite Index, a measure of mortgage loan application volume, decreased 9.2% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 38% compared with the previous week. The Refinance Index decreased 16% from the previous week and was 61% higher than the same week one year ago. The seasonally adjusted Purchase Index increased 1% from one week earlier. The unadjusted Purchase Index decreased 33% compared with the previous week and was 24% lower than the same week one year ago.
“U.S. Treasury rates stayed flat last week, as uncertainty surrounding the U.K. elections offset positive domestic news on consumer spending,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting. “Despite the 30-year fixed rate remaining unchanged at 3.97%, mortgage applications fell last week, driven down by a 16% drop in refinances. Purchase applications were up slightly but declined 24% from a year ago. This week’s year-over-year comparisons were distorted by Thanksgiving being a week later this year.”
Added Kan, “The purchase market overall looks healthy as we enter the home stretch of 2019. The seasonally adjusted purchase index was at its highest level since July, as a combination of wage gains, slower home-price appreciation, and slightly easing inventory conditions continue to support increased activity.”
The refinance share of mortgage activity decreased to 59% of total applications from 62% the previous week. The adjustable-rate mortgage (ARM) share of activity remained unchanged at 4.8% of total applications.
The FHA share of total applications increased to 12% from 11.7% the week prior. The VA share of total applications decreased to 12.7% from 14.1% 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) remained unchanged at 3.97%, with points increasing to 0.32 from 0.30 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $484,350) increased to 3.91% from 3.87%, with points decreasing to 0.26 from 0.29 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 3.83% from 3.79%, with points increasing to 0.31 from 0.23 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.37% from 3.38%, with points increasing to 0.28 from 0.27 (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 3.28% from 3.42%, with points increasing to 0.27 from 0.22 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
