Refi app volume fell to its lowest level since December 2000
.jpg)
Mortgage applications decreased during the week ending Nov. 9 despite the positive general economic outlook, according to the Weekly Mortgage Applications Survey released by the Mortgage Bankers Association (MBA).
The Market Composite Index, a measure of mortgage loan application volume, fell 3.2% on a seasonally adjusted basis and dropped 5% on an unadjusted basis.
The Refinance Index declined 4.3%, reaching its lowest level since December 2000. The seasonally adjusted Purchase Index fell 2.3%, reaching its lowest level since February 2017. The unadjusted Purchase Index dropped 5% and was 3% lower than the same period last year.
"Recent volatility in the financial markets and increasing rates continue to adversely impact mortgage application activity, even as the general economic outlook remains positive," said Joel Kan, MBA's associate vice president of economic and industry forecasting. "Both home purchase and mortgage refinance applications decreased over the week, driven largely by declines in conventional applications. Mortgage rates increased over the week for most loan types, with the 30-year fixed-rate mortgage increasing to 5.17% – the highest level since 2010."
The MBA survey also found that the refinance share of mortgage activity increased to 39.4% from 39.1%. The activity share of adjustable-rate mortgages decreased to 7.7%.
Applications for FHA loans accounted for 10.6% of overall activity, up from 10.1. The VA share of total applications remained unchanged at 10.1% from the week prior. The share of USDA applications remained unchanged at 0.7%.
