Mortgage applications fell 10 percent last week

Mortgage applications decreased 10 percent from one week earlier, as refinancing fell despite consistently low loan rates. 

The Mortgage Bankers Association's weekly survey on Wednesday showed a 12.2 percent drop in refinancing activity, along with a 2.3 percent decrease in purchases, for the week that ended Nov. 11, with an adjustment for the Veterans Day holiday.

The four-week moving average, a less volatile measure than the weekly figures, is up 1.02 percent, with purchases increasing 2.53 percent and refinancing up 0.61 percent.

The refinance share of mortgage activity decreased to 77.3 percent of total applications from 78.6 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 6.1 percent from 5.8 percent of total applications from the previous week.

In October, 50.6 percent of applications for those refinancing chose fixed-rate 30-year loans, 28.8 percent opted for 15-year fixed loans and 6 percent chose ARMs. 

The 15-year refinance share is at its second highest point since the survey was re-benchmarked in January. 

For applications for home purchase, 85.5 percent were for fixed-rate 30-year loans, 6.9 percent for 15-year fixed loans and 5.9 percent for ARMs, the lowest ARM share for purchases since January, according to the survey. 

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) increased to 4.23 percent from 4.22 percent. The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) decreased to 4.56 percent from 4.57 percent.

For mortgages backed by the FHA, the average contract interest rate for 30-year fixed-rate increased to 4.03 percent from 4.02 percent, while the average rate for 15-year fixed-rate mortgages remained unchanged at 3.54 percent

The average contract interest rate for 5/1 ARMs remained unchanged at 3.01 percent.