U.S. Mortgage Applications Jump 6.2% as Rates Fall for a Fourth Straight Week
Mortgage applications in the United States rose last week as interest rates fell for a fourth straight week to their lowest levels since mid-September, according to the Mortgage Bankers Association (MBA) weekly survey released on November 11.
For the week ending November 6, the MBA Market Composite Index, a measure of total mortgage loan application volume, increased 6.2% on a seasonally adjusted basis from one week earlier. The Purchase Index increased 8% from one week earlier after seasonal adjustment, though purchase applications were still down 18% from a year ago.
The refinance share of mortgage activity remained unchanged at 39.8%, but was 57% lower than the same week one year ago, as most homeowners remain locked into the lower rates they secured in earlier years.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances fell to 7.21%, down from 7.30% the previous week; rates averaged 5.99% a year ago. A separate Freddie Mac survey put last week's 30-year fixed average at 7.18%.
Applications for adjustable-rate mortgages decreased to 10.9% of total applications, down from 11.4% the previous week. The FHA share of applications decreased to 15.5% from 16%, the VA share increased to 12% from 11.2%, and the USDA share decreased to 0.5% from 0.6%.
"Mortgage rates declined for the fourth straight week," said Joel Kan, MBA's vice president and deputy chief economist. "The declining trend in rates helped to spur stronger application activity, although the pace of purchase and refinance applications remain considerably lower than a year ago." Kan noted that FHA and VA loans saw particularly strong growth.
Source: Mortgage Bankers Association
Published by GSM · USA (original Chinese edition)
Photo: 图：印第安纳州 Indianapolis 郊区 Fishers 的 Geist 水库周边住宅区航拍。公共领域图片，经 Wikimedia Commons。 / Aerial view of housing developments around Geist Reservoir in Fishers, a suburb of Indianapolis, Indiana. Public domain, via Wikimedia Commons.
