The Mortgage
Bankers Association (MBA) reported on
Wednesday that the mortgage application volume in the U.S. plunged by 10.8 per cent in the week ended November 1, following a 0.1
per cent slip the week before. This was the sixth straight weekly decline in total mortgage
application volume.
According to
the MBA’s data, last week’s tumble in mortgage applications reflected
an 18.5 per cent plummet in mortgage refinance applications and a 5.1 per cent drop in
mortgage applications to purchase a home.
The report also
revealed that the average fixed 30-year mortgage rate increased from 6.73 per cent to 6.81
per cent, the highest level in 14 weeks.
Commenting on
the latest survey results, Joel Kan, MBA’s vice president and deputy chief
economist, noted purchase activity fell to its lowest level since mid-August
and refinance activity declined to the lowest level since May. “The average
loan size on a refinance application dropped below $300,000, as borrowers with
larger loans tend to be more sensitive to any given changes in mortgage rates,”
he added.