Mortgage applications decreased 0.1% from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending November 1, 2019.
The Market Composite Index, a measure of mortgage loan application volume, decreased 0.1% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 1% compared with the previous week. The Refinance Index increased 2% from the previous week and was 144% higher than the same week one year ago. The seasonally adjusted Purchase Index decreased 3% from one week earlier. The unadjusted Purchase Index decreased 4% compared with the previous week and was 7% higher than the same week one year ago.
“U.S. Treasury yields once again exhibited some intra-week volatility before declining sharply toward the end of the week. As a result, mortgage rates decreased, with the 30-year fixed rate falling below 4% again,” said Joel Kan, Associate Vice President of Economic and Industry Forecasting. “In response to the lower rates, refinance applications climbed 2%, as homeowners with larger loan balances helped to keep the average refinance loan size elevated. Purchase applications fell slightly last week but remained almost 7% higher than a year ago.”
Added Kan, “Amidst persistent supply constraints in the entry-level price range, there’s evidence that high-end homebuyers are more active this fall. The average loan size for purchase applications increased to its highest level since May.”
The refinance share of mortgage activity increased to 59.5% of total applications from 58.0 % the previous week. The adjustable-rate mortgage (ARM) share of activity remained unchanged at 5.2% of total applications.
The FHA share of total applications decreased to 11.8% from 12.0% the week prior. The VA share of total applications increased to 12.0% from 11.8% the week prior. The USDA share of total applications remained unchanged from 0.6% the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) decreased to 3.98% from 4.05%, with points remaining unchanged at 0.37 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $484,350) decreased to 3.97% from 4.01%, with points decreasing to 0.24 from 0.30 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.79% from 3.83%, with points decreasing to 0.21 from 0.28 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.38% from 3.40%, with points decreasing to 0.31 from 0.36 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
The average contract interest rate for 5/1 ARMs remained unchanged at 3.43%, with points decreasing to 0.21 from 0.23 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
