Mortgage applications have fallen for the sixth consecutive week, with rising rates in 30-year fixed mortgage types, as reported by the Mortgage Bankers Association on Wednesday. The mortgage market composite index, which gauges loan application volume, plunged nearly 11% for the week ending November 1, based on seasonally adjusted figures, following a minor 0.1% dip in the previous week.
Unadjusted, the index showed a 12% week-over-week decrease. "Ten-year Treasury rates remain volatile and continue to exert upward pressure on mortgage rates," stated Joel Kan, the association's deputy chief economist. He noted that applications have seen a steady decline for the sixth consecutive week, with purchase activity dipping to its lowest point since mid-August and refinance activity also experiencing a fall, marking its lowest level since May. The purchase index saw a decline of 5% on a week-to-week basis and a 7% decrease without adjustments.
However, compared to the same week in 2023, the purchase index remains 2% higher. In stark contrast, the refinance index dropped dramatically by 19% weekly but registered a notable increase of about 48% compared to last year. Kan mentioned, "The average loan size on a refinance application fell below $300,000, as larger borrowers tend to be more responsive to fluctuations in mortgage rates." Additionally, the average interest rate for 30-year fixed-rate mortgages with conforming loan balances of $766,550 or less rose to 6.81%, its highest level since July, compared to 6.73% a week prior.
For loan balances exceeding this threshold, rates climbed to 6.98% from 6.77%. Meanwhile, 15-year loan rates decreased slightly to 6.21% from 6.27%. For fixed-rate mortgages with 30-year terms supported by the Federal Housing Administration, rates increased to 6.75%, up from 6.55% week-over-week. The share of FHA loans, typically favored by first-time home buyers and those making smaller down payments, dropped to 15.5% of total applications, decreasing from 16.4% from the previous week. In domestic politics, Donald Trump emerged victorious over Kamala Harris, the vice president and Democratic nominee, in the U.S.
presidential election held on Tuesday. The Federal Reserve's monetary policy committee is set to disclose its next interest rate decision on Thursday..