Mortgage application volume fell sharply during the week ended Nov. 28, due mainly to the Thanksgiving holiday but also due to a sharp decline in applications for refinances, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.
Total volume decreased 7.3%, on an adjusted basis, compared to the previous week. On an unadjusted basis, volume fell a whopping 37%.Â
Applications for refinances fell 13%, despite a slight overall decrease in mortgage rates, while applications for purchases actually increased about 3%.Â
On an unadjusted basis, applications for purchases decreased a jaw-dropping 32% compared with the previous week and were 4% lower compared to the same week one year ago.
As a result of the massive drop in applications for refinances, the refinance share of mortgage activity decreased to 60% of total applications, down from 63% the previous week.
The average rate for a 30-year fixed-rate mortgage (FRM) with conforming loan balance ($417,000 or less) during the week ended Nov. 28 was 4.08%, down from 4.15% the week prior.
The average rate for a 30-year FRM with jumbo loan balance (greater than $417,000) was 4.11%, up slightly from 4.10% the previous week.
The average rate for a 30-year FRM backed by the Federal Housing Administration (FHA) was 3.85%, down from 3.90%.
The average rate for a 15-year FRM was 3.30%, down from 3.35%.
The average rate for a 5/1 adjustable-rate mortgage (ARM) was 3.07%, up slightly from 3.06%.
The ARM share of activity decreased to 6.7% of total applications.
Looking at application volume by loan type, applications for mortgages backed by the FHA represented 9.3% of all applications, down from 9.4% the previous week. Applications for Veterans Affairs mortgages represented 9.4% of all loans, down from 10.3% the previous week. Applications for mortgages through the U.S. Department of Agriculture remained unchanged at 0.8% of total applications.
The MBA survey covers over 75% of all U.S. retail residential mortgage applications.