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Mortgage Applications Fall Despite Rates Slipping Back Below 4%

Mortgage Applications Fall Despite Rates Slipping Back Below 4%

Wednesday, 20 November 2019 01:28 PM

Mortgage applications decreased 2.2 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 2.2 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 14 percent compared with the previous week.

The Refinance Index decreased 8 percent from the previous week and was 152 percent higher than the same week one year ago. The seasonally adjusted Purchase Index increased 7 percent from one week earlier. The unadjusted Purchase Index decreased 8 percent compared with the previous week and was 7 percent higher than the same week one year ago.

"U.S. and China trade anxieties and protests in Hong Kong pulled U.S. Treasuries lower last week, and the 30-year fixed mortgage rate followed the same path, dipping below 4 percent," said Joel Kan, MBA's Associate Vice President of Economic and Industry Forecasting.

"Despite lower rates, mortgage applications decreased 2.2 percent, driven by an 8 percent slide in refinance activity. Rates have stayed in the same narrow range of around 4 percent since July, so we may be starting to see the expected slowdown in refinancing as the pool of eligible homeowners shrinks."

Added Kan, "Purchase applications were 7 percent higher than a year ago, which adds another solid data point to the recent increases in new home sales and housing starts. There may be signs that housing inventory is starting to meaningfully rise, which will help with affordability and provide more choices for potential homebuyers."

The refinance share of mortgage activity decreased to 59.5 percent of total applications from 61.9 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 4.6 percent of total applications.


The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) decreased to 3.99 percent from 4.03 percent.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.40 percent from 3.43 percent.

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Mortgage applications decreased 2.2 percent from one week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey. 
mortgage, applications, rates, home, loan
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2019-28-20
Wednesday, 20 November 2019 01:28 PM
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