Mortgage applications volume dropped 10 percent on a seasonally adjusted basis during the week ended November 11 according to results of the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.  The non-seasonally adjusted decrease in MBA's Market Composite Index was 19.6 percent during the week which was impacted to some extent by the Veterans Day holiday.

The Refinance Index was down 12.2 percent from the week ended November 4 and the seasonally adjusted Purchase Index lost 2.3 percent.  The unadjusted Purchase Index was down 14.8 percent from the previous week and 9.5 percent from the same week in 2010.

The four-week moving average for all three indices increased with the Market Index up 1.02 percent, the seasonally adjusted Purchase Index up 2.53 percent and the Refinance Index up 0.61 percent.

Applications for refinancing represented 77.3 percent of all applications compared to 78.6 percent the previous week while the adjustable-rate mortgage (ARM) share increased to 6.1 percent from 5.8 percent.  During the week 28.8 percent of applications for refinancing were for fixed rate 15-year loans, the second largest share for those loans since the survey was re-benchmarked at the beginning of the year.  Applications for 30-year fixed rate mortgages (FRM) made up 50.6 percent of applications for refinancing and ARMS 6.0 percent.  Applications for home purchases were overwhelmingly (85.5 percent) for 30-year FRM with 6.9 percent seeking 15-year FRMs and 5.9 percent ARMS, a low for the year.

Purchase Index vs 30 Yr Fixed

Refinance Index vs 30 Yr Fixed

Interest rates were mixed.  The rate for a 30-year FRM with a conforming loan balance - under $417,500 - increased to 4.23 percent with 0.52 point from 4.22 percent with 0.41 point.  Points include origination fees.  The effective rate of 30-year conforming FRMs increased.  The rate for jumbo 30-year FRM (loans with a balance above $417,500) decreased from 4.57 percent to 4.56 percent and points decreased from 0.47 to 0.46.  The effective rate also decreased.

Thirty-year FRMS backed by FHA had an average contract interest rate of 4.03 percent, up one basis point from the previous week.  Points increased (from 0.49 to 0.59) as did the effective rate.

Rates for 15-year FRM were unchanged at 3.54 percent with points up from 0.45 to 0.47 and 5/1 ARM mortgage rates were also unchanged at 3.01 percent with points increasing from 0.47 to 0.49.  The effective rate of both loan types increased.

All rates quoted are for loans with an 80 percent loan-to-value ratio and are derived from an MBA survey covering 75 percent of U.S. retail mortgage applications.  Respondents include mortgage bankers, commercial banks, and thrifts.  The index is based on activity during the week of March 16, 1990.