The Mortgage Bankers Association’s (MBA) latest Weekly Application Survey shows that, for the week ending November 13, 2020, mortgage application activity decreased by 0.3% from the prior week on a seasonally adjusted basis, as indicated by its Market Composite Index.
However, the Purchasing Index, increased by 3.5% from the previous week while the Refinance Index decreased by 2%. The MBA’s tracked 30-year fixed-rate mortgage rate measure increased to 2.99%, hovering 1 basis point above the record low reached the previous week.
Year-over-year gains for purchasing and refinancing remain strong at 26% and 98%, respectively. The MBA cites that the recent weekly decline in refinancing was driven by sharp declines in FHA and VA applications. Furthermore, the average refinance loan balance was $291,000 last week, the lowest level since January. Many borrowers with higher balances may have acted earlier in the current refinancing wave.
The refinance share of mortgage activity decreased to 69.8% of total applications from 70% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 1.9% of total applications.