Mortgage Applications Fall During Thanksgiving Week

Mortgage applications dipped slightly during Thanksgiving week on lower refinance activity, according to data from the Mortgage Bankers Association.

The MBA noted Wednesday in its Weekly Mortgage Applications Survey that the market composite index fell by 0.2% on a seasonally adjusted basis from the previous week. The refinance index dropped by 6% during the same period, while the purchase index increased 8% on a seasonally adjusted basis. On an unadjusted basis, purchase apps were up 30% over the same week in 2014.

Refinances, as a share of overall mortgage activity, dropped to 56.6% from 58.7% a week earlier. The FHA share also declined to 13.2% from 13.7% the previous week, while the adjustable-rate share dipped to 6.1% of total applications.

Additionally, the VA share of mortgage activity edged up to 11.3% from 11% the week prior, and the USDA share held steady at 0.7%.

Mortgage rates were a similarly mixed bag during the holiday week.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) dropped to 4.12% from 4.14%. Similarly, the average contract interest rate for 5/1 ARMs decreased 8 basis points to 3.11%. The average rate for 15-year fixed-rate mortgages also declined to 3.36% from 3.39%.

Conversely, the average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased two basis points to 3.89%. The average rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) stayed the same as the week prior at 3.99%.