Industry News

Refis tumble during Thanksgiving week

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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...