After a sizable jump in application volume two weeks ago, last week was payback time in the mortgage market.
Total applications fell 4.3 percent week-to-week on a seasonally adjusted basis for the week ending Nov. 21, according to the Mortgage Bankers Association (MBA). This even as mortgage rates dropped.
Applications to refinance a loan decreased 4 percent from the previous week. Applications to purchase a home fell 5 percent after jumping a surprising 12 percent the previous week. Purchase application volume is now off 10 percent from a year ago. This comes amid new data for October showing an increase in existing home sales. The drop in purchase application volume suggests slower sales in November.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 4.15 percent last week from 4.18 percent the previous week, according to the MBA survey, but rates are even lower now.