U.S. Weekly Mortgage Applications Inched Up in The Latest Week
Summary
- Applications for loans to purchase surged, while those for refinancing declined.
- Interest rates on 30-year fixed-rate mortgage inched up for the fourth consecutive week.
- Average loan size rose in the latest week.
The number of weekly mortgage loans rose 0.2% (52.7% y/y) during the week ended November 21 after declining 5.2% (+62.0% y/y) during the week ended November 14, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey. Applications for loans to purchase a house surged 7.6% (18.8% y/y) in the latest week after declining 2.3% (+24.0% y/y) in the prior week. Applications for loan refinancing declined 5.7% (+117.3% y/y) in the week ended November 21, following a decline of 7.3% (+124.7% y/y) in the week ended November 14.
The effective interest rate on a 30-year fixed-rate mortgage increased 3bps to 6.58% in the week ended November 21 from 6.55% during the prior week. The rate on a 15-year fixed rate loan eased 2bps to 5.98% in the latest week from 6.00%, while interest rates on a 30-year JUMBO loan rose 14bps to 6.65% from 6.51%. Rates on a 5-year ARM dropped 31bps to 5.64% from 5.95%. The November 14 rate was the highest rate since the first week of September.
Loans to refinance an existing mortgage fell to 53.4% of total applications in the week ended November 21 from 55.4% in the prior week. The percentage of total loans that were ARMs rose to 7.9% from 7.5% one week earlier.
The average loan size rose 0.2% w/w to $395,600 in the week ended November 21 from $394,900 the prior week. The size of conventional purchase loans declined 1.4% w/w to $427,200 from $433,400, while the size of refinanced loans rose 1.1% w/w to $368,000 from $363,900 one week earlier.
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.
Kathleen Stephansen, CBE
AuthorMore in Author Profile »Kathleen Stephansen is a Senior Economist for Haver Analytics and an Independent Trustee for the EQAT/VIP/1290 Trust Funds, encompassing the US mutual funds sponsored by the Equitable Life Insurance Company. She is a former Chief Economist of Huawei Technologies USA, Senior Economic Advisor to the Boston Consulting Group, Chief Economist of the American International Group (AIG) and AIG Asset Management’s Senior Strategist and Global Head of Sovereign Research. Prior to joining AIG in 2010, Kathleen held various positions as Chief Economist or Head of Global Research at Aladdin Capital Holdings, Credit Suisse and Donaldson, Lufkin and Jenrette Securities Corporation.
Kathleen serves on the boards of the Global Interdependence Center (GIC), as Vice-Chair of the GIC College of Central Bankers, is the Treasurer for Economists for Peace and Security (EPS) and is a former board member of the National Association of Business Economics (NABE). She is a member of Chatham House and the Economic Club of New York. She holds an undergraduate degree in economics from the Universite Catholique de Louvain and graduate degrees in economics from the University of New Hampshire (MA) and the London School of Economics (PhD abd).
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