In San Jose, Calif., the typical homeowner gains $99.81 in equity per working hour.
Andy Dean Photography Adobe Stock

Mortgage applications fell by 3.2% on a seasonally-adjusted basis from one week earlier in the Mortgage Bankers Association’s latest Weekly Mortgage Applications Survey, which covers the week ending November 9th, 2018.

On an unadjusted basis, the Market Composite Index, a measure of mortgage loan application volume, fell 5% from the previous week. The Refinance Index fell 4.3% over the same period, falling to its lowest level since December 2000. The seasonally-adjusted Purchase Index fell 2.3%, down to its lowest level since February 2017, and the unadjusted Purchase Index fell 5%.

The refinance share of mortgage activity rose to 39.4% of total applications, up from 39.1% the previous week. The adjustable-rate mortgage (ARM) share of activity fell to 7.7% of total applications. The FHA share rose to 10.6% from 10.1%, the VA share remained unchanged at 10.1%, and the USDA share remained unchanged at 0.7%.

“Recent volatility in the financial markets and increasing rates continue to adversely impact mortgage application activity, even as the general economic outlook remains positive,” says Joel Kan, MBA’s AVP of Economic and Industry Forecasting. “Both home purchase and mortgage refinance applications decreased over the week, driven largely by declines in conventional applications. Mortgage rates increased over the week for most loan types, with the 30-year fixed rate mortgage increasing to 5.17 percent – the highest level since 2010.”

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) rose to 5.17% from 5.15%. Points for 80% loan-to-value ratio (LTV) loans rose to 0.55 from 0.51. (All 80% LTV loan reports include the origination fee.) The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $453,100) rose to 4.98% from 4.97%. Points for 80% LTV loans rose to 0.28 from 0.27, and the effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA fell to 5.08% from 5.15%. Points for 80% LTV loans fell to 0.55 from 0.64, and the effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages rose to 4.57% from 5.55%. Points for 80% LTV loans rose to 0.56 from 0.51, and the effective rate increased from last week.

The average contract interest rate for 5/1 ARMs rose to 4.45% from 4.36%. Points for 80% LTV loans fell to 0.31 from 0.35, and the effective rate increased from last week.