Mortgage Applications Decline Despite Decreasing Mortgage Rates

mortgage applications

The volume of mortgage applications in the United States went down by 4.3% in the week ended November 21st compared to the previous week. This was indicated by the seasonally adjusted Market Composite Index of the Mortgage Bankers Association. At the same time, the average rate on a 30-year fixed-rate conforming mortgage declined to 4.15% from 4.18% in the week before, as reported by the MBA.

For the week ended November 14th, adjustment was made for the Veteran’s Day Holiday. On an unadjusted basis, the volume of applications rose by 5.0% from the week before.
The Refinance Index experienced a decline as well. It went down by 4.0% in the week ending November 21st. Even though the total volume of applications for mortgage refinance decreased, their share in the total volume of applications increased. Their share rose to 63% compared to 61% one week earlier.

Refinance at
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The applications for new home loans underwent a steeper decline. The seasonally adjusted Purchase Index fell by 5.0% compared to the week ended November 14th. On an unadjusted basis, the applications for home purchase loans rose by 1.0%. Despite the slight increase, the unadjusted Purchase Index was 10% below its level of the same week of 2013.

The share of applications for FHA loans in the total volume of applications declined to 9.4% in the week ended November 21st from 9.9% during the week before. The share of FHA loans underwent a greater decline. It dropped down to 10.3% compared to 11.5% one week earlier. The share of USDA did not undergo any changes and remained 0.8%

hile the average rate on a 30-year fixed-rate conforming loan dropped, the average rate on a jumbo loan with the same term and type of rate was unchanged and remained 4.10%. While the average rate on a 30-year fixed-rate FHA loan rose to 3.90% from 3.85%, the average rate on a 15-year fixed-rate conforming loan dropped to 3.35% from 3.38% compared to the previous week. The average rate on a 5/1 hybrid adjustable-rate mortgage decreased to 3.06% from 3.09%.

Christian

Christian

Christian Calvin mortgage Christian is a contributing writer for Mortgage.info. He is a graduate from the University of Tennessee with a degree in Communications and a concentration in Broadcasting. Christian has served as vice-president for a privately-held company for more than 20 years. Additionally, he has also applied his writing and business knowledge to various websites with a focus on business and sports news . . . both of which are passions. Christian enjoys playing golf and spending time with his family and friends.

Contact: christian@mortgage.info
Christian

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