Mortgage Application Volume Takes a Downturn

Fewer home loan applications were being processed, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending Nov. 4.

The Market Composite Index dropped by 1.2 percent on a seasonally adjusted basis from one week earlier to its lowest level since May, while the index fell two percent on an unadjusted basis. The seasonally adjusted Purchase Index increased by one percent from one week earlier, but the unadjusted Purchase Index decreased by one percent—although it was 11 percent higher than the same week one year ago. The Refinance Index fell by three percent from the previous week to its lowest level since May as the refinance share of mortgage activity decreased to 62.3 percent of total applications from 62.7 percent the previous week.

Among the federal mortgage programs, the FHA share of total applications increased to 11.6 percent from 11.1 percent the week prior, while the VA share of total applications decreased to 12.3 percent from 12.4 percent and the USDA share of total applications remained unchanged at 0.7 percent.