The Mortgage Bankers Association (MBA) released its weekly report on mortgage applications Wednesday morning, noting a decrease of 7.3% in the group’s seasonally adjusted composite index for the week ending November 28. That followed a drop of 4.3% for the previous week. Mortgage loan rates fell on three loan types and rose slightly on the other two. The short holiday week likely had a significant impact on last week’s numbers.
On an unadjusted basis, the composite index decreased by 37% week-over-week. The seasonally adjusted purchase index increased 3% compared to the week ended November 21. The unadjusted purchase index dropped by 32% for the week and remains 4% lower year-over-year.
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Adjustable rate mortgage loans accounted for 6.7% of all applications, down from 7.0% in the prior week.
The MBA’s refinance index decreased by 13%, after rising by 4% in the previous week. The share of refinancings declined from 63% to 60%.
The average mortgage loan rate for a conforming 30-year fixed-rate mortgage decreased from 4.15% to 4.08%, the lowest since May 2013. The rate for a jumbo 30-year fixed-rate mortgage increased slightly from 4.10% to 4.11%. The average interest rate for a 15-year fixed-rate mortgage decreased from 3.35% to 3.30%.
The contract interest rate for a 5/1 adjustable rate mortgage loan increased from 3.06% to 3.07%. Rates on a 30-year FHA-backed fixed rate loan declined from 3.90% to 3.85%.
The lowest mortgage interest rate in about a year and a half was the highlight of last week’s mortgage market. While this is not the best time of year for home buying, the lower mortgage rates could last well into next year, and that can only help the housing market.