Mortgage application activity was on the rise in the latest data from the Mortgage Bankers Association (MBA), which tracked the week ending Nov. 3.
The Market Composite Index, the trade group’s measure of mortgage loan application volume, was up by 2.5% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the index inched up by 1%.
The seasonally adjusted Purchase Index increased 3% from one week earlier while the unadjusted index took a 1% uptick – but the latter was also 20% lower than the same week one year ago. The Refinance Index increased 2% from the previous week and was 7% lower than the same week one year ago, while the refinance share of mortgage activity increased to 31.4% from the previous week’s 31.2%.
Among the federal programs, the FHA share of total applications remained unchanged at 14.7% and the USDA share was also unchanged at 0.5% while the VA share increased to 10.5% from 10.1% the week prior.
Joel Kan, MBA’s vice president and deputy chief economist, observed, “Applications for both purchase and refinance loans were up over the week but remained at low levels. The purchase index is still more than 20 percent behind last year’s pace, as many homebuyers remain on the sidelines until more for-sale inventory becomes available.”
