Mortgage applications decreased 12.8 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Nov. 29, 2013. This week’s results include an adjustment for the Thanksgiving holiday.
The Market Composite Index, a measure of mortgage loan application volume, decreased 12.8 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 40 percent compared with the previous week. The Refinance Index decreased 18 percent from the previous week and is at its lowest level since the week ending September 6, 2013. The seasonally adjusted Purchase Index decreased 4 percent from one week earlier. The unadjusted Purchase Index decreased 36 percent compared with the previous week and was 37 percent lower than the same week one year ago.
“Interest rates edged higher in November in response to expectations about the timing of the Fed’s pullback in bond purchases," said Quicken Loans vice president Bill Banfield. "The direction of rates during this holiday-impacted week had a larger effect on mortgage activity than we saw last year and continued a recent trend of weaker applications for both purchase and refinance loans.”
The refinance share of mortgage activity decreased to 63 percent of total applications from 66 percent the previous week. The adjustable-rate mortgage (ARM) share of activity was unchanged at 8 percent of total applications.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to 4.51 percent from 4.48 percent, with points increasing to 0.38 from 0.31 (including the origination fee) for 80 percent 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 $417,000) increased to 4.49 percent from 4.48 percent, with points increasing to 0.24 from 0.15 (including the origination fee) for 80 percent 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 4.17 percent from 4.16 percent, with points increasing to 0.36 from 0.24 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The average contract interest rate for 15-year fixed-rate mortgages increased to 3.56 percent from 3.52 percent, with points increasing to 0.32 from 0.31 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The average contract interest rate for 5/1 ARMs decreased to 3.09 percent from 3.18 percent, with points decreasing to 0.28 from 0.37 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
