Mortgage Applications Drop 2.2% in Latest MBA Survey

Mortgage application volume decreased by 2.2% on a seasonally adjusted basis for the week ended Nov. 16, according to the Mortgage Bankers Association, as rates ticked upwards for the period. There was an adjustment to take into account Veteran’s Day.

The week prior to this saw an increase in activity attributed to demand held in check by Hurricane Sandy.

The Refinance Index decreased 3% from the previous week, while the seasonally adjusted Purchase Index increased 3%. The unadjusted Purchase Index was 6% lower than the same week one year ago. The market share of refi apps remained at 81%.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) increased by two basis points from the previous week to 3.54%, while the average contract interest rate for 30-year FHA-insured loans rose two basis points to 3.36%.

Bucking the trend was the rate for 30-year FRMs with jumbo loan balances, which declined seven basis points to 3.76%.

The average contract interest rate for 15-year FRMs rose one basis point to 2.89%. The rate for the 5/1 ARM was up two basis points to 2.62.