Tags: mortgage | applications | home | loan | refinances

Weekly Mortgage Applications Drop 9% as Refinances Pull Back

Weekly Mortgage Applications Drop 9% as Refinances Pull Back
(Dreamstime/FLYNT)

Wednesday, 04 December 2019 12:46 PM

Mortgage applications decreased 9.2 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 9.2 percent on a seasonally adjusted basis from one week earlier.

On an unadjusted basis, the Index decreased 38 percent compared with the previous week. The Refinance Index decreased 16 percent from the previous week and was 61 percent higher than the same week one year ago. The seasonally adjusted Purchase Index increased 1 percent from one week earlier. The unadjusted Purchase Index decreased 33 percent compared with the previous week and was 24 percent 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 percent, mortgage applications fell last week, driven down by a 16 percent drop in refinances. Purchase applications were up slightly but declined 24 percent 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 59.0 percent of total applications from 62.0 percent the previous week. 

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) remained unchanged at 3.97 percent.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.37 percent from 3.38 percent.

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Mortgage applications decreased 9.2 percent from one week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey. 
mortgage, applications, home, loan, refinances
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2019-46-04
Wednesday, 04 December 2019 12:46 PM
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