MBA: Mortgage applications rebound on lower rates
Mortgage applications rose for the first time in two months last week as the 30-year fixed rate saw its biggest one-week drop since July.
Home loan applications rose 2.7% on a seasonally adjusted weekly basis during the week ended Nov. 11, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey.
“Mortgage rates fell last week as signs of slowing inflation pushed Treasury yields lower,” MBA vice president and deputy chief economist Joel Kan said in a statement. A press release. “Application activity, adjusted for the Veterans Day holiday, increased in response to lower rates – driven by a 4% increase in home purchase applications. purchases increased for all loan types, and the average purchase loan fell to its smallest amount since January 2021.”
The average contractual interest rate for 30-year conforming mortgages of $647,200 or less dipped to 6.90% from 7.14%, while the rate for 30-year fixed-rate mortgages backed by the FHA rose to 6.93% from 6.86%.
The average contractual interest rate for 30-year fixed rate mortgages with jumbo loan balances over $647,200 increased from 6.50% to 6.51%, and the average contractual interest rate for a 15-year fixed rate mortgage fell to 6.27% from 6.40%.
Refinancing activity remained subdued as homeowners have little incentive to refinance in the current rate environment, Kan said. The MBA Refinance Index was down 2% from the previous week and 88% from the same week last year. The refinancing share of mortgage activity fell to 27.6% of total applications, from 28.1% the previous week.