WASHINGTON–Although rates have ticked up, mortgage applications increased 5.5% for the week ending Nov. 18 from one week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.
On an unadjusted basis, the Index increased 3% compared with the previous week, the MBA reported. The Refinance Index, meanwhile, decreased 3% from the previous week to its lowest level since January 2016.
Other findings:
- The seasonally adjusted Purchase Index increased 19% from one week earlier.
- The unadjusted Purchase Index increased 13% compared with the previous week and was 11% higher than the same week one year ago.
"Mortgage rates have continued to move higher in the post-election period, as investors worldwide are looking for increases in growth and inflation, with the 30-year mortgage rate reaching its highest weekly average since the beginning of 2016," said Michael Fratantoni, chief economist and senior vice president of research and technology at the Mortgage Bankers Association, in a statement. "Refinance volume dropped further over the week, particularly for refinances of FHA and VA loans. Purchase volume increased sharply for the week compared to both last week, which included the Veteran's Day holiday, and last year, with purchase volume up more than 11% on a year over year basis. The increase in purchase activity was driven by borrowers seeking larger loans and that drove up the average loan amount on home purchase applications to $310,000, the highest in the survey, which dates back to 1990."
The MBA said the refinance share of mortgage activity decreased to 58.2% of total applications from 61.9% the previous week. The ARM share of activity increased to 5.2% of total applications.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to its highest level since January 2016, 4.16%, from 3.95%, with points unchanged at 0.39 (including the origination fee) for 80% loan-to-value ratio loans, according to the MBA.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) increased to its highest level since January 2016, 4.04%, from 3.89%, with points increasing to 0.37 from 0.26 (including the origination fee) for 80%, the MBA data show.