The Mortgage Bankers Association (MBA) reports that mortgage applications activity dropped slightly during the week ended November 16 compared to the week ended November 9.  The Market Composite Index, a measure of application volume, was down 2.2 percent on a seasonally adjusted basis with an adjustment for the shorter week due to the Veterans Day holiday.  On an unadjusted basis the index was down 13 percent.

The Refinance Index decreased 3 percent from the previous week and refinancing held on to the same 81 percent market share as during that week.  The seasonally adjusted Purchase Index increased 3 percent week-over-week and the unadjusted index was 6 percent lower than the same week in 2011.

Purchase Index vs 30 Yr Fixed

Refinance Index vs 30 Yr Fixed

Interest rates were mixed.  The average contract rate for a 30-year fixed-rate mortgage (FRM) with a conforming loan balance of $417,500 increased two basis points to 3.54 percent with points decreasing to 0.40 from 0.41.  The effective loan rate increased for the week.

The jumbo version of the 30-year FRM had an average contract interest rate of 3.76 percent with 0.40 point compared to 3.83 percent with 0.41 point the previous week.  The effective rate also decreased. 

Rates for 30-year FRM backed by the FHA increased to 3.36 percent from 3.34 percent but points dropped to 0.63 from 0.78 causing the effective rate to drop.

The average contract interest rate for 15-year fixed-rate mortgages edged up one basis point to 2.89 percent while points decreased to 0.25 from 0.37 and the effective rate decreased from the previous week.

Adjustable rate mortgage (ARM) applications were up slightly for the week but when rounded remained at a 4 percent market share.  The average interest rate for 5/1 ARMs increased to 2.62 percent from 2.60 percent, with points increasing to 0.37 from 0.30 and the effective rate increased.

Interest rate information is for loans with an 80 percent loan to value ratio and points include the origination fee.

Volume and rate information are derived from MBA's Weekly Mortgage Application Survey of mortgage bankers, commercial banks, and thrifts covering 75 percent of national mortgage activity.  The survey has been conducted since 1990 and the base period and value for all indices is March 16, 1990.