Holiday week sees drop in mortgage applications

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The Mortgage Bankers Association reported that claims fell 0.6% in the week ending Nov. 27 in its latest weekly poll.

The refinancing index was also lower, down 5% from the previous week, but up 102% from last year’s totals compared to the same week. The seasonally adjusted purchasing index increased – up 9% from the previous week – while the unadjusted purchasing index declined 28% from the previous week.

Joel Kan, associate vice president of industry and economic forecasting at MBA, noted that the numbers in this report are still going to be “mixed” after the Thanksgiving holiday.

“Purchasing activity continued to post impressive year-over-year gains, with the conventional and government segments of the market recording another week of growth,” Kan said. “Purchase loan amounts continue to be well above their average over the past decade and hit $ 375,000 last week, the highest amount since the launch of the MBA survey in 1990 Housing demand remains strong, and despite extremely tight inventories and rising prices, home sales are running at their highest pace in more than a decade.

Kan added that a prolonged period of low mortgage rates continues to “stimulate borrower demand,” putting the mortgage industry on the verge of having its strongest year of start-ups since 2003.


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“The current wave of refinancing has been beneficial for homeowners looking to reduce their monthly payments during these difficult economic times brought on by the pandemic,” he said.

The refinancing share of mortgage activity fell to 69.5% of total applications, from 71.1% the previous week. The activity share of variable rate mortgages fell to 1.8% from 1.9% last week.

Here’s a more detailed breakdown of this week’s mortgage application data:

  • The average contractual interest rate for 30-year fixed rate mortgages with compliant loan balances ($ 510,400 or less) was unchanged at 2.9% from the previous week.
  • Average contractual interest rate for 30-year fixed rate mortgages with jumbo loan balances (greater than $ 510,400) increased from 3.18% to 3.19%
  • Average contractual interest rate for 30-year fixed-rate mortgages fell from 2.99% to 3% – a low in the survey, as reported last week
  • The average contractual interest rate for 15-year fixed rate mortgages fell from 2.51% to 2.53%.
  • The average contractual interest rate of ARM 5/1 increased from 2.63% to 47%


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