Industry News

Refis tumble during Thanksgiving week

Survey: Double-digit drop overshadows gain in home-purchase apps

Despite an uptick in loan applications for home purchases, overall application volume fell during the week of Thanksgiving, the Mortgage Bankers Association reported today. The group's market composite index, a measure of total home loan application volume, dropped 4.3 percent on a seasonally and holiday adjusted basis from mid-month, taken lower by a double-digit decline in refinancing activity. MBA reported a 6.1 percent increase in the index that tracks applications for purchase loans, while the refinance index sank 15.3 percent. As a result, the refi share of applications last week dropped to 45.8 percent from 50.3 percent a week earlier, and the adjustable-rate mortgage (ARM) share dipped from 15.8 percent to 14.6 percent. Borrowing costs were mostly lower in the survey as the average contract interest rate on 30-year fixed-rate mortgages last week fell to 6.09 percent from 6.18 percent one week earlier, and the average 15-year fixed sank to 5.69 percent from 5.71 per...