Tags: mortgage | applications | rates | refinance | purchase | housing | home

Mortgage Applications Rise 5.5 Percent as Rates Slip

approved mortgage loan application with house key and rubber stamp
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Wednesday, 28 November 2018 01:26 PM

Mortgage applications increased 5.5 percent from one week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending November 23.

This week's results include an adjustment for the Thanksgiving holiday.

The Market Composite Index, a measure of mortgage loan application volume, increased 5.5 percent on a seasonally adjusted basis from one week earlier. The seasonally adjusted Purchase Index increased 9 percent from one week earlier.

"After several weeks of market volatility, 30-year fixed mortgage rates decreased four basis points to 5.12 percent last week. Homebuyers responded, with purchase applications 1.7 percent higher than a year ago, and after adjusting for the Thanksgiving holiday, they increased almost 9 percent from the previous week," said Mike Fratantoni, MBA's Chief Economist.

"The rise in purchase activity was led by conventional purchase applications, which surged almost 12 percent, while government purchases were essentially unchanged over the week. This also pushed the average loan size for purchase applications higher, which likely meant there were fewer first-time homebuyers in the market last week."

Added Fratantoni, "Refinance activity increased slightly overall, driven by conventional refinances, while government refinances decreased, as both FHA and VA applications dropped over the past week."

The refinance share of mortgage activity decreased to 37.9 percent of total applications from 38.5 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 7.9 percent of total applications.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) decreased to 5.12 percent from 5.16 percent.

The average contract interest rate for 15-year fixed-rate mortgages remained unchanged at 4.53 percent.

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Mortgage applications increased 5.5 percent from one week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending November 23.
mortgage, applications, rates, refinance, purchase, housing, home, loan
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2018-26-28
Wednesday, 28 November 2018 01:26 PM
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