MBA: Mortgage Applications Decrease in Latest Weekly Survey

Mortgage applications decreased 2.8 percent from
one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage
Applications Survey for the week ending November 12, 2021.

… The Refinance Index decreased 5 percent from the previous
week and was 31 percent lower than the same week one year ago. The seasonally adjusted Purchase
Index increased 2 percent from one week earlier. The unadjusted Purchase Index decreased 2 percent
compared with the previous week and was 6 percent lower than the same week one year ago.

“Refinance applications decreased for the seventh time in eight weeks, as mortgage rates moved higher
after two weeks of declines. Activity has been particularly sensitive to rate movements, and last week’s
decline was driven by a drop in conventional and FHA refinance applications, which offset an increase in
VA refinance applications. All mortgage rates in MBA’s survey increased, with the 30-year fixed rate
climbing to 3.2 percent.” said Joel Kan, MBA’s Associate Vice President of Economic and Industry
Forecasting. “Purchase applications increased for both conventional and government loan segments, as
housing demand continues to show resiliency at a time – late fall – when home buying activity typically
slows. The second straight increase in purchase applications suggests that stronger sales activity may
continue in the weeks to come. Despite elevated demand, purchase applications were 5.7 percent lower
than a year ago.”

…
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances
($548,250 or less) increased to 3.20 percent from 3.16 percent, with points increasing to 0.43 from 0.34
(including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
emphasis added

Note: Red is a four-week average (blue is weekly).