Mortgage applications were up 2.2% for the week ending November 18.
The Mortgage Bankers Association’s (MBA) Market Composite Index rose 2.2% on a seasonally adjusted basis from one week earlier. The Market Composite Index is a measure of mortgage loan application volume. On an unadjusted basis, the Index increased 10% from the previous week.
“The decrease in mortgage rates should improve the purchasing power of prospective homebuyers, who have been largely sidelined as mortgage rates have more than doubled in the past year,” said Joel Kan, MBA’s vice president and deputy chief economist. “As a result of the drop in mortgage rates, both purchase and refinance applications picked up slightly last week.”
The data also showed that:
- The Refinance Index increased 2% from the previous week; it was 86% lower than the same week one year ago.
- The seasonally adjusted Purchase Index rose 3%.
- The unadjusted Purchase Index increased 9% from the previous week and was 41% lower than the same week one year ago.
- Refinances increased to 28.4% of total applications from 27.6% the previous week.
- The adjustable-rate mortgage (ARM) share of activity dropped to 8.8% of total applications.