Mortgage Purchase Applications Surge In Nov

Mortgage applications for new home purchases in November jumped by 34.7 percent over a year ago, according to a report released by the Mortgage Bankers Association.

For the month, purchase applications dropped by 16 percent from October, MBA said.

“November new home sales activity, both mortgage applications and home sales, ran at a pace considerably ahead of 2019, showing the ongoing strong growth in housing demand and new residential construction,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “However, MBA estimates that after climbing to a new survey high in October, the seasonally adjusted pace of new home sales declined in November. Signs of a slowdown in the economic recovery likely contributed to the expected monthly decrease in activity.”

MBA released another report Wednesday that showed overall mortgage applications for the week ending December 11 increased 1.1 percent from the week before.

The Refinance Index increased 1 percent for the week and was 105 percent higher than the same week last year, while the Purchase Index increased 2 percent – and was 26 percent higher than the same week last year.

The refinance share of mortgage activity increased to 72.7 percent of total applications from 72 percent the previous week. The adjustable-rate mortgage share of activity increased to 1.8 percent of total applications.  

“The ongoing strength in the housing market has carried into December. Applications to buy a home increased for the fourth time in five weeks, as both conventional and government segments of the market saw gains,” Kan said. “Government purchase applications rose for the sixth straight week to the highest level since June – perhaps a sign that more first-time buyers are entering the market.”