Mortgage apps down for 3rd straight week as rates climb

by MPA20 Nov 2013

Mortgage applications dropped for the third straight week last week as higher rates dampened borrowing.

According to the Mortgage Bankers Association’s weekly mortgage application survey, the Market Composite Index – a measure of loan application volume -- decreased 2.3% last week on a seasonally adjusted basis. On an unadjusted basis, the index dropped 13% from the previous week.

The refinance index was also down, dropping 7% last week, and the refinance share of mortgage activity dropped from 66% to 64% this week.

The average rate for 30-year fixed-rate mortgages with conforming loan balances jumped from 4.44% to 4.46% last week, according to the MBA. The average rate for FHA-backed 30-year FRMs was also up, increasing from the previous week’s 4.14% to 4.16%. the average rate for 15-year FRMs stayed steady at 3.52%.

The average interest rate for 5/1 adjustable-rate mortgages increased to 3.12% from the previous week’s 3.11%.



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