Skip to main content

Mortgage Applications Take a Tumble

Nov 16, 2016
Applications for home loans all but dried up, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Nov. 11

Applications for home loans all but dried up, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Nov. 11.

The Market Composite Index fell by 9.2 percent on a seasonally adjusted basis and 10 percent on an unadjusted basis from one week earlier. The seasonally adjusted Purchase Index took a six percent stumble from one week earlier to its lowest level since January, while the unadjusted index fell 10 percent—although it was still three percent above the level recorded the same week one year ago. And the Refinance Index declined by 11 percent to its lowest level since March as the refinance share of mortgage activity decreased to 61.9 percent of total applications from 62.3 percent the previous week.

However, there was mostly positive movement among the federal home loan programs. The FHA share of total applications increased to 12.2 percent from 11.6 percent the week prior while the VA share of total applications increased to 12.6 percent from 12.3 percent. The USDA share of total applications saw a scant dip to 0.6 percent from 0.7 percent the week prior.

“Following the election, mortgage rates saw their biggest week over week increase since the taper tantrum in June 2013, and reached their highest level since January of this year,” said David H. Stevens, president and CEO of the MBA. “Investor expectations of faster growth and higher inflation are driving the jump up in rates, and rates have now increased for five of the past six weeks, spurring a commensurate drop in refinance activity."

About the author
Published
Nov 16, 2016
Co-Founder Mat Grella Terminated From NEXA

NEXA CEO Kortas states negotiations regarding the buyout will continue.

Mar 27, 2024
Comings And Goings At AmeriHome

Chief Operating Officer John Hedlund announced his retirement on Thursday in a LinkedIn post.

Mar 22, 2024
Rocket's Tim Birkmeier To Retire

Birkmeier is bidding farewell after a 28-year career at Rocket Companies.

Mar 21, 2024
How NAR’s Settlement Impacts Homebuying

While the settlement's silver lining is that homes are expected to become more affordable, many uncertainties loom over the housing market.

Mar 19, 2024
NAR Reaches $418 Million Settlement

The association agreed to give home sellers the option of compensating agents.

Mar 15, 2024
U.S. Non-Bank Mortgage Lenders Surge Amid Industry Consolidation, Fitch Ratings Reports

As smaller players exit the market, scaled originators like UWM and PennyMac Financial dominate, but challenges persist with low origination volume and pressured margins amidst rising interest rates.

Mar 14, 2024