U.S. Mortgage Applications Fall 1.4% in the November 28 Week Following Modest Gain
Summary
- Purchase applications +2.5% w/w; refinancing loan applications -4.4% w/w.
- Effective interest rate on 30-year fixed loans drops to a four-week-low 6.49%
- Average loan size rises to the highest level since the October 31 week.
Mortgage applications declined 1.4% w/w (+46.3% y/y) in the week ending November 28 following a 0.2% increase in the week ending November 21, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey. The latest reading was the second w/w fall in three weeks to the index level of 313.0, the lowest since the September 5 week. Applications for loans to purchase a house rose 2.5% (15.2% y/y) in the November 28 week, the third w/w rise in four weeks, after a 7.6% rebound in the previous week. Applications for loan refinancing fell 4.4% (+109.0% y/y) in the November 28 week, the fifth straight w/w fall, on top of a 5.7% decline in the November 21 week.
The effective interest rate on a 30-year fixed-rate loan fell 9bps to 6.49% in the week ending November 28, the lowest since the October 31 week, after rising to 6.58% in the week ending November 21; it was up from a low of 6.29% in the week of September 20, 2024 but down from a peak of 8.12% in the week of October 20, 2023. The rate on 15-year fixed-rate mortgages fell 9bps to a three-week-low 5.89% in the November 28 week after easing to 5.98% in the previous week; it was up from a low of 5.60% in the week of September 20, 2024 but down from a high of 7.44% in the week of October 27, 2023. The rate on 30-year jumbo loans dropped 13bps to 6.52% in the November 28 week after rising to a seven-week-high 6.65% in the prior week; it remained below a high of 7.99% in the week of October 27, 2023. The rate on a 5-year ARM fell 16bps to 5.48% in the November 28 week, the lowest since the September 9, 2022 week, after falling to 5.64% in the previous week; it was below a high of 7.31% in the week of October 27, 2023.
The share of applications for refinancing an existing loan fell to 53.0% of total applications in the week ending November 28, the lowest reading since the September 5 week, after declining to 53.4% in the week ending November 21; those numbers remained below a peak of 60.2% in the week of September 19. The adjustable-rate mortgage (ARM) share of activity rose to 8.0% in the November 28 week, the highest reading since the October 31 week, after rising to 7.9% in the prior week; it was below its recent peak of 12.9% in the September 12 week but up from a low of 4.7% in the January 3 week.
The average size of a mortgage loan rose 0.4% w/w (5.2% y/y) to $397,100 in the November 28 week, the highest level since the October 31 week, after a 0.2% increase to $395,600 in the November 21 week. The average size of a purchase loan fell 0.9% (-2.0% y/y) to $423,300 in the November 28 week after a 1.4% decline to $427,200 in the prior week, marking the fifth weekly fall in six weeks and the lowest level since the January 10 week. The average size of a loan to refinance a mortgage rose 1.6% (28.3% y/y) to $373,900 in the November 28 week, the highest level in four weeks, after a 1.1% rebound to $368,000 in the previous week.
The Mortgage Bankers Association Survey covers 75% of all U.S. retail residential mortgage applications and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts. The base period and value for all indexes is March 16, 1990=100. The figures for weekly mortgage applications and interest rates are available in Haver’s SURVEYS database.
Winnie Tapasanun
AuthorMore in Author Profile »Winnie Tapasanun has been working for Haver Analytics since 2013. She has 20+ years of working in the financial services industry. As Vice President and Economic Analyst at Globicus International, Inc., a New York-based company specializing in macroeconomics and financial markets, Winnie oversaw the company’s business operations, managed financial and economic data, and wrote daily reports on macroeconomics and financial markets. Prior to working at Globicus, she was Investment Promotion Officer at the New York Office of the Thailand Board of Investment (BOI) where she wrote monthly reports on the U.S. economic outlook, wrote reports on the outlook of key U.S. industries, and assisted investors on doing business and investment in Thailand. Prior to joining the BOI, she was Adjunct Professor teaching International Political Economy/International Relations at the City College of New York. Prior to her teaching experience at the CCNY, Winnie successfully completed internships at the United Nations. Winnie holds an MA Degree from Long Island University, New York. She also did graduate studies at Columbia University in the City of New York and doctoral requirements at the Graduate Center of the City University of New York. Her areas of specialization are international political economy, macroeconomics, financial markets, political economy, international relations, and business development/business strategy. Her regional specialization includes, but not limited to, Southeast Asia and East Asia. Winnie is bilingual in English and Thai with competency in French. She loves to travel (~30 countries) to better understand each country’s unique economy, fascinating culture and people as well as the global economy as a whole.
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