Mortgage Applications Increase in the Week Ending December 6th

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey for the week ending Friday, December 6th, the Market Composite Index—a measure of mortgage loan application volume—increased 5.4% on a seasonally adjusted basis from one week earlier. The results include an adjustment for the Thanksgiving holiday. On an unadjusted basis, the Index increased 50.0% compared with the previous week.

The Refinance Index increased 27.0% from the previous week and was 42.0% lower than the same week one year ago.

The seasonally adjusted Purchase Index decreased 4.0% from one week earlier. The unadjusted Purchase Index increased 30% compared with the previous week and was 4.0% higher than the same week one year ago.

Commenting on the results of this week’s survey, MBA Vice President and Deputy Chief Economist Joel Kan said:

“Mortgage rates decreased again for the third consecutive week, with the 30-year fixed rate dipping to 6.67%. Applications increased 5%, driven by a 27% surge in refinance activity, as borrowers with higher rates acted on the chance to lower their payments. VA refinance applications were up 85% from the previous week, matching some of the larger swings in VA activity reported in recent months.

Purchase applications remained relatively strong and have shown annual gains in all but one week over the past three months. In addition to lower rates, purchase activity continues to be supported by sustained housing demand and inventory that continues to grow gradually in many markets.”