According to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey in the week ended November 23, 2018, US mortgage applications increased by 5.5 percent compared to a week ago. This week’s results include an adjustment for the Thanksgiving holiday.

Market Composite Index rose 5.5 percent on a seasonally adjusted basis a week ago. On an uncorrected basis, the Index declined to 29 percent with previous week.

Refinance Index increased by 1 percent compared to the previous week. The seasonally adjusted Prochase Index increased 9 percent from a week ago. The uncorrected Purchase Index fell 28 percent from previous week and was 2 percent higher than the same week a year ago.

Fratantoni, “After several weeks of market volatility, 30-year fixed mortgage rates decreased four basis points to 5.12 percent last week. Homebuyers responded, with purchase applications 1.7 percent higher than a year ago, and after adjusting for the Thanksgiving holiday, they increased almost 9 percent from the previous week,” said Mike Fratantoni, MBA’s Chief Economist. “The rise in purchase activity was led by conventional purchase applications, which surged almost 12 percent, while government purchases were essentially unchanged over the week. This also pushed the average loan size for purchase applications higher, which likely meant there were fewer first-time homebuyers in the market last week.” said.

Added Fratantoni, “Refinance activity increased slightly overall, driven by conventional refinances, while government refinances decreased, as both FHA and VA applications dropped over the past week.”

Source: World Property Journal

Melike Vodina /