Homeowners are still refinancing their mortgages to take advantage of historically low interest rates.
Overall, mortgage applications decreased 0.5 percent for the week ending November 6, with the Purchase Index down 3 percent and the Refinance Index up 1 percent, according to a report released Wednesday by the Mortgage Bankers Association.
Year over year, however, refinances were up 67 percent – and purchase applications were up 16 percent.
“The refinance index climbed to its highest level since August, led by a 1.5 percent increase in conventional refinances,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “The purchase market continued its recent slump, with the index decreasing for the sixth time in seven weeks to its lowest level since May 2020..”
The refinance share of mortgage activity increased to 70 percent of total applications from 68.7 percent the previous week. The adjustable-rate mortgage share of activity decreased to 2.0 percent of total applications.