Mortgage Applications Increased 2.8 Percent From One Week Earlier

Mortgage applications increased 2.8 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending November 29, 2024. This week’s results include an adjustment for the Thanksgiving holiday.

The Market Composite Index, a measure of mortgage loan application volume, increased 2.8 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 30 percent compared with the previous week.  The Refinance Index decreased 1 percent from the previous week and was 7 percent lower than the same week one year ago. The seasonally adjusted Purchase Index increased 6 percent from one week earlier. The unadjusted Purchase Index decreased 30 percent compared with the previous week and was 21 percent lower than the same week one year ago.

“Mortgage rates fell to their lowest level in over a month last week, with the 30-year fixed rate decreasing to 6.69 percent,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “The recent strength in purchase activity continues, supported by lower rates and higher inventory levels, which are giving prospective buyers more options compared to earlier in the year. The purchase index increased for the fourth straight week to its highest level since January 2024. Conventional refinance applications declined despite the lower rates, but FHA and VA refinances rebounded from a week ago.”

The refinance share of mortgage activity decreased to 38.7 percent of total applications from 38.8 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 6.0 percent of total applications.

The FHA share of total applications remained unchanged at 16.0 percent from the week prior. The VA share of total applications increased to 13.6 percent from 12.4 percent the week prior. The USDA share of total applications decreased to 0.4 percent from 0.5 percent the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) decreased to 6.69 percent from 6.86 percent, with points decreasing to 0.67 from 0.70 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $766,550) decreased to 6.85 percent from 6.97 percent, with points decreasing to 0.39 from 0.63 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 6.49 percent from 6.61 percent, with points increasing to 1.00 from 0.99 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 6.12 percent from 6.29 percent, with points decreasing to 0.52 from 0.76 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 5/1 ARMs decreased to 6.24 percent from 6.34 percent, with points decreasing to 0.58 from 0.63 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.