Applications for mortgages decreased last week, with total volume falling to it's lowest levels since May. According to the Mortgage Bankers Association, it's Market Composite Index, a measure of mortgage application volume, dropped by 1.2 percent for the week ended November 4.
This latest data does not reflect the increase in mortgage rates that ensued following the presidential election. Current rates are near a seven month high which will likely impact mortgage activity in the coming weeks.
The refinance share of total applications declined three percent from the previous week, also a five month low. Refinances accounted for 62.3 percent of all applications for home loans last week. FHA loans, which are insured by the federal government and require as little as 3.5 percent down, increased to 11.6 percent of the total mortgage activity for the week.
Today, conforming no-point 30-year fixed rates are averaging 3.75 percent while the 15-year rate is near 3.00 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.