Home loan application volume fell for a second straight week despite mortgage rates hovering at or near all-time lows.
Applications were off 4.5 percent on a seasonally adjusted basis (-5.8% unadjusted) for the week ending November 20 compared to one week earlier, according to the Mortgage Bankers Association.
The decline was led by a 9.5 percent drop in refinance activity; purchase apps actually increased 4.9 percent from one week earlier, but were 13.7 lower than a year ago.
It’s also important to note purchase activity hit its lowest point since 1997 in the previous survey, so while the increase is welcome news, it’s not exactly great news.
The refinance share of mortgage activity fell to 71.7 percent of total applications from 74.6 percent a week earlier, while the adjustable-rate mortgage share increased to 5.3 percent from 5.1 percent.
Mortgage Rates Hit Record Lows
Meanwhile, the popular 30-year fixed slipped to 4.78 percent during the week ending November 25, matching an all-time low not seen since April 30, according to Freddie Mac.
The 15-year fixed hit a fresh all-time low, averaging 4.29 percent, down from 4.32 percent last week and 5.74 percent a year ago.
The five-year ARM slipped to 4.18 percent from 4.25 percent a week ago, and sits well below the 5.86 percent average seen a year earlier.
It’s at its lowest point since Freddie Mac began tracking it back in 2005.
Finally, the one-year ARM remained unchanged at 4.35 percent, nearly a point better than the 5.18 percent seen a year ago, and its lowest level since July 7, 2005.
The interest rates quoted above are good for conforming loan amounts at a loan-to-value of 80 percent.
Keep in mind that other mortgage pricing adjustments may increase or decrease the actual interest rate you receive; and jumbo loans continue to price a percentage point or more higher.
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