Thanksgiving week isn't exactly the busiest time of the year for residential lenders, and new figures released by the Mortgage Bankers Association show that application volume tanked by almost 17% during the week ending Nov. 26.
The trade group also found that refinancings are beginning to slip with purchase money loans making up a larger piece of the application pie.
Refi activity accounted for 75% of all new loan applications during the holiday week compared to almost 79% the prior week. MBA's findings are seasonally adjusted and based on surveys which feed into two indexes.
Adjustments also were made for the shortened holiday week. Without those adjustments, applications fell 34%.
Purchase applications (25% of all new business) haven't been this high since May.
Meanwhile, loan rates are beginning to rise, which could have a negative impact on the mortgage and housing markets. Increasingly, Realtors are complaining about overly tight credit standards being offered by mortgage banking firms.
