Mortgage application volume decreased by 0.9% over last week on a seasonally adjusted basis, as rising interest rates continue to affect refinancing activity, according to new figures released by the Mortgage Bankers Association. The previous week's data was adjusted for Thanksgiving Day.
Refinancing applications fell 1.4% from the previous week. However, purchase application volume continued a rising trend (up three consecutive weeks), with an increase of 1.8% on a seasonally adjusted basis when compared with last week.
The market share of refi applications increased to 75.2% of all new loan activity, up from 74.9% the prior week. MBA tracks activity through its proprietary application index.
MBA reported that the average contract interest rate for a 30-year fixed-rate mortgage increased for the fourth consecutive week, from 4.56% to 4.66%, with points falling to 0.95 from 0.96 (including the origination fee) for loans with an 80% loan-to-value ratio. This is the highest rate for these loans since July, the survey found.
For the 15-year FRM rates increased from 3.91% to 3.98%, while points increased from 0.88 to 0.97. MBA said this rate is at its highest point since early September.
