Mortgage Purchase Applications Tick Up, Refinancing Falls

Mortgage activity was mixed in the November 16 week, with purchase applications rising a seasonally adjusted 3 percent but applications for refinancing declining 5 percent from the prior week. Unadjusted, purchase applications fell deeper into negative territory by 2 percentage points to 5 percent below their level in the same week last year. The refinance share of mortgage activity fell 0.9 percentage points to 38.5 percent, the lowest level in 18 years. Posting the first downtick in 7 weeks, the average interest rate on 30-year fixed rate conforming mortgages ($453,100 or less) fell 1 basis point to 5.16 percent. The steepening year-on-year decline in purchase applications confirms data released earlier this week (a decline in the Housing Market Index to the lowest level since August 2016 and housing starts and permits down 2.9 percent and 6.0 percent year-on-year respectively ) showing accelerating contraction in a housing market weakened by the highest mortgage rates since 2010, low inventories and labor shortages.