Weekly applications for new residential loans were dragged down by a slowdown in mortgage refinancing activity.
In the week ended Nov. 25,
the seasonally adjusted Market Composite Index declined 9 from one week previous.
The index,
which is a measure of mortgage loan application volume, sank 38 percent without any seasonal adjustments.
The Mortgage Bankers Association reported the index in its
Weekly Mortgage Applications Survey.
MBA reported that refinance applications fell 16 percent from the week ended Nov. 18. Refinance share was cut to 55.1 percent from 58.2 percent a week earlier and 56.6 percent a year earlier.
Applications for purchase financing were mostly unchanged from the prior report on a seasonally adjusted basis. But without seasonal adjustments, purchase-money activity tumbled by more than a third, though there was a 3 percent bump versus the week ended Nov. 27, 2015.
During the latest week, applications for mortgages insured by the Federal Housing Administration represented 10.4 percent of total applications. FHA share thinned from 11.7 percent in the prior report and 13.2 percent a year prior.
Applications for loans guaranteed by the Department of Veterans Affairs made up 11.7 percent of total activity. VA share was more narrow than 12.5 percent in the last report
but wider than 11.3 percent in the same week last year.
Interest rates on jumbo mortgages were 5 basis points less than on conforming loans. The jumbo-conforming spread was cut from a negative 12 BPS in the previous week
and a negative 13 BPS a year previous.
Adjustable-rate mortgage applications accounted for 5.7 percent of all applications — the widest share since June. ARM share was
5.2 percent the previous week and 6.1 percent a year previous.
