Mortgage applications decreased 7.2% for the week ending Nov. 26. According to the latest data from the Mortgage Bankers Association (MBA), the Market Composite Index, which measures the volume of mortgage loan applications, decreased 7.2% on a seasonally adjusted basis from the previous week.
Key findings:
- Unadjusted, the index decreased 37% for the week
- The Refinance Index decreased 15%—41% lower YoY
- The Seasonally adjusted Purchase Index increased 5%
- The Unadjusted Purchase Index decreased 30%—8% YoY
- The refinance share of applications is down 59.4%
- The adjustable-rate mortgage (ARM) share is up 3.6%
- The FHA share is up 8.9%
- The VA share is down 10.0%
- The USDA share is up 0.5%
The takeaway:
“Mortgage rates rose for the third week in a row, reducing the refinance incentive for many borrowers. The 30-year fixed rate hit 3.31%—the highest since this April—and led to refinance applications falling more than 14%. Over the past three weeks, rates are up 15 basis points and refinance activity has declined over 18%,” said Joel Kan, MBA’s associate vice president of Economic and Industry Forecasting, in a statement. “Despite higher mortgage rates, purchase applications had a strong week, mostly driven by a 6% increase in conventional loan applications. Conventional loans tend to be larger than government loans, and this was evident in the average loan amount, which increased to $414,700—the highest since February 2021. As home-price appreciation continues at a double-digit pace, buyers of newer, pricier homes continue to dominate purchase activity, while the share of first-time buyer activity remains depressed.”
Source: MBA
