Mortgage rates hit another record low of 2.98%, purchase index hits 6-month low

 Mortgage applications decreased 0.5 percent from one week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending November 6, 2020.   

The Market Composite Index, a measure of mortgage loan application volume, decreased 0.5 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 1 percent compared with the previous week. The Refinance Index increased 1 percent from the previous week and was 67 percent higher than the same week one year ago. The seasonally adjusted Purchase Index decreased 3 percent from one week earlier. The unadjusted Purchase Index decreased 5 percent compared with the previous week and was 16 percent higher than the same week one year ago.   

The refinance share of mortgage activity increased to 70.0 percent of total applications from 68.7 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 2.0 percent of total applications.   

The FHA share of total applications decreased to 10.6 percent from 11.1 percent the week prior. The VA share of total applications increased to 12.6 percent from 12.2 percent the week prior. The USDA share of total applications decreased to 0.4 percent from 0.5 percent the week prior. 

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($510,400 or less) decreased to a survey low of 2.98 percent from 3.01 percent, with points decreasing to 0.35 from  0.38 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate decreased from last week.  

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $510,400) decreased to 3.13 percent from 3.18 percent, with points increasing to 0.31 from 0.30 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.    

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA remained unchanged at 3.08 percent, with points increasing to 0.37 from 0.26 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.   

The average contract interest rate for 15-year fixed-rate mortgages remained unchanged at 2.55 percent, with points increasing to 0.37 from 0.35 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.