After five straight weeks of steady increases, mortgage applications decreased this week, along with refinance activity following a surge last week, after the first increase in mortgage rates in several weeks as well.
Here’s what the Mortgage Bankers Association (MBA) is reporting this week: Home purchase applications decreased 0.7% from one week earlier, when they increased by 5.4%. The refinance share of mortgage activity decreased to 46.7% of total applications from 46.8% the previous week. And the adjustable-rate mortgage (ARM) share of activity remained unchanged at 5.3% of total applications. The data is published weekly in MBA’s Mortgage Applications Survey.
“Mortgage rates increased last week, leading to overall mortgage application activity decreasing for the first time in five weeks,” said Joel Kan, MBA’s vice president and deputy chief economist. “Conventional and VA purchase applications drove this week’s increase in purchase activity on a weekly and annual basis. Buyers remained active in the purchase market, helped by gradually improving inventory conditions and a more positive outlook on the economy and job market. Refinance applications declined last week, largely driven by VA refinances that were down 17% after two weeks of gains.”
More data from this week: The Market Composite Index, a measure of mortgage loan application volume, decreased 0.7% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 2% compared with the previous week. The Refinance Index decreased 3% from the previous week and was 41% higher than the same week one year ago. The seasonally adjusted Purchase Index increased 1% from one week earlier. The unadjusted Purchase Index decreased 2% compared with the previous week and was 6% higher than the same week one year ago.
To view the full data report for the week ending Dec. 13, click here.
