According to the Mortgage Bankers Association’s weekly mortgage applications survey, refinance activity fell to 56.6% of total applications for the week ending November 27. That’s a drop from the previous week’s market of 58.7%.
The refinance index decreased 6% this past week, continuing a trend that saw last week’s index fall 5% compared to its prior week.
The survey also found applications, overall, fell 0.2% week-over-week.
However, these stats are in line with traditionally norms, as business tends to slow down leading into the Holiday season and the new year.
Rates, meanwhile, stayed relatively stable.
The average 30-year fixed-rate mortgage for conforming loans decreased to 4.12% from the previous week’s average of 4.14%.
The average 30-year fixed-rate for jumbo loans remained unchanged at 3.99%.
The average interest rate for 30-year fixed rate FHA
-backed mortgages increased to 3.89% from 3.87%.
Finally, the average 15-year fixed rate fell to 3.36% from 3.39%.
With rates remaining stable, it’s likely business will continue to chug along at a decent pace for originators for the rest of the year.
However, the Fed’s next meeting – which could include the first major rate hike in years – could influence rates.
Originators have enjoyed higher-than-normal refinance business in the wake of low rates, but more evidence is pointing to the eventual end of that trend.