According to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending Dec. 4, mortgage applications decreased 1.2 percent from one week earlier, including an adjustment for the Thanksgiving holiday.
The Refinance Index increased 2 percent from the previous week and was 89 percent higher than the same week one year ago. The seasonally adjusted Purchase Index decreased 5 percent from one week earlier. The unadjusted Purchase Index increased 29 percent compared with the previous week and was 22 percent higher than the same week one year ago.
“Refinance activity increased last week in response to mortgage rates for 30-year, 15-year, and FHA loans hitting their lowest levels in MBA’s survey,” says MBA’s Joel Kan. “The increase in refinance applications was driven by FHA and VA refinances, while conventional activity fell slightly. The ongoing refinance wave has continued through the fall, with activity last week up 89 percent from a year ago.
The refinance share of mortgage activity increased to 72.0 percent of total applications, from 69.5 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 1.7 percent of total applications.
The FHA share of total applications increased to 9.9 percent, from 9.1 percent the week prior. The VA share of total applications increased to 12.7 percent, from 11.9 percent the week prior. The USDA share of total applications remained unchanged from 0.4 percent the week prior.
“The purchase market is also poised to finish 2020 on a strong note,” Kan adds. “Applications fell slightly last week but were around 3 percent higher than the two weeks leading up to Thanksgiving. Reversing the recent trend, there was also a shift in the composition of purchase applications, with an increase in government loans pushing the average loan balance lower.”
For more details, visit mba.org/WeeklyApps.
Photo: Joel Kan
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