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Mortgage Applications From Homebuyers Fall 3% to 6-Month Low

Mortgage Applications From Homebuyers Fall 3% to 6-Month Low
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By    |   Wednesday, 11 November 2020 06:32 PM

Mortgage demand from homebuyers drops to its lowest level in six months, according to industry data.

Mortgage applications decreased 0.5 percent from one week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.

The Market Composite Index, a measure of mortgage loan application volume, decreased 0.5 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 1 percent compared with the previous week. 

The Refinance Index increased 1 percent from the previous week and was 67 percent higher than the same week one year ago. The seasonally adjusted Purchase Index decreased 3 percent from one week earlier. 

"Mortgage application activity was mixed last week, despite the 30-year fixed rate decreasing to 2.98 percent - an all-time MBA survey low. The refinance index climbed to its highest level since August, led by a 1.5 percent increase in conventional refinances," said Joel Kan, MBA's Associate Vice President of Economic and Industry Forecasting.

"The purchase market continued its recent slump, with the index decreasing for the sixth time in seven weeks to its lowest level since May 2020. Homebuyer demand is still strong overall, and activity was up 16.5 percent from a year ago," Kan said.

"However, inadequate housing supply is putting upward pressure on home prices and is impacting affordability - especially for first-time buyers and lower-income buyers. The trend in larger average loan application sizes and growth in loan amounts points to the continued rise in home prices, as well as the strength in the upper end of the market."   

The refinance share of mortgage activity increased to 70.0 percent of total applications from 68.7 percent the previous week.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($510,400 or less) decreased to a survey low of 2.98 percent from 3.01 percent.

The average contract interest rate for 15-year fixed-rate mortgages remained unchanged at 2.55 percent.

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Mortgage applications have fallen to a six-month low, according to data from the Mortgage Bankers Association (MBA).
mortgage, applications, home loan, demand
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2020-32-11
Wednesday, 11 November 2020 06:32 PM
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