Mortgage applications fell 4.3% for the week ended November 23, led by a 15.3% decline in refinance applications, according to the Mortgage Bankers Association weekly survey.
The MBA’s application index, adjusted for the Thanksgiving holiday, declined to 652.5 from 681.7 the prior week, well below its peak of 1,856.7 during the week ending May 30, 2003.
The refinance share of mortgage applications plunged to 45.8% from 50.3% the prior week, as purchase applications rose a sizable 6.1%.
It’s the second week in a row that refinances dipped, after a 5% decline a week earlier.
It is believed that tighter lending guidelines and falling home prices have made it increasingly difficult for homeowners to refinance existing loans.
Interest rates also moved in opposite directions, with fixed rates falling and unfashionable adjustable-rates rising heavily.
The average 30-year fixed mortgage dipped 9 basis points to 6.09%, its lowest level since the week ended March 23.
But rates on one-year adjustable-rate mortgages surged 26 basis points to 6.24%, the highest level since mid-September.
The average rate on a 15-year fixed mortgage dropped to 5.69% from 5.71% the prior week.
The National Association of Realtors reported Wednesday that the supply of homes on the market hit a 22-year high last month, as existing-home sales fell 1.2% to a 4.97 million annualized pace in October.
Related Topics:
