Mortgage applications rose by 5.5% on a seasonally-adjusted basis over the week ending November 23rd, 2018, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey. The results include an adjustment for the Thanksgiving holiday.

On an unadjusted basis, the Market Composite Index, a measure of mortgage loan application volume, fell by 29% from the previous week. The Refinance Index rose 1% over the same period. The seasonally-adjusted Purchase Index rose 9%, while the unadjusted Purchase Index fell 28%.

The refinance share of mortgage activity fell to 37.9% of total applications, down from 38.5% the previous week. The adjustable-rate mortgage (ARM) share rose to 7.9% of applications. The FHA share fell to 9.6% from 10.7% the week before. The VA share of total applications fell to 9.9% from 10.6%, and the USDA share remained unchanged at 0.7%.

“After several weeks of market volatility, 30-year fixed mortgage rates decreased four basis points to 5.12% last week. Homebuyers responded, with purchase applications 1.7% higher than a year ago, and after adjusting for the Thanksgiving holiday, they increased almost 9% from the previous week,” says Mike Fratantoni, MBA’s Chief Economist. “The rise in purchase activity was led by conventional purchase applications, which surged almost 12%, while government purchases were essentially unchanged over the week. This also pushed the average loan size for purchase applications higher, which likely meant there were fewer first-time homebuyers in the market last week.”

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) fell to 5.12% from 5.16%. Points for 80% loan-to-value ratio (LTV) loans fell to 0.46 from 0.48. (All 80% LTV loan reports include the origination fee.) The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $453,100) remained unchanged at 4.88%. Points for 80% LTV loans rose to 0.31 from 0.29, and the effective rate remained unchanged.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA rose to 5.11% from 5.08%. Points for 80% LTV loans remained unchanged at 0.63. The effective rate increased from last week.

The average contract interest rate for 15-year fixed-rate mortgages remained unchanged at 4.53%. Points for 80% LTV loans fell to 0.42 from 0.51, and the effective rate increased from last week.

The average contract interest rate for 5/1 ARMs rose to 4.29% from 4.24%. Points for 80% LTV loans fell to 0.42 from 0.51, and the effective rate increased from last week.