Survey: Mortgage rates fall, applications increase

The latest weekly mortgage applications survey, released Nov. 15 by the Mortgage Bankers Association, showed a market composite index of 647.5 for the week ended Nov. 10. That’s an increase of 4.3 percent compared to the previous week, on a seasonally adjusted basis, and down 0.1 percent compared to the same week in 2005, according to an MBA news release.

Interest rates

The average contract interest rate for 30-year fixed-rate mortgages decreased from 6.24 percent to 6.15 percent, the lowest rate for 30-year loans since January.

The average contract interest rate for 15-year fixed-rate mortgages decreased from 5.96 percent to 5.85 percent. The average contract interest rate for one-year adjustable-rate mortgages decreased from 5.89 percent to 5.87 percent.

Refinancing

The seasonally-adjusted refinance index increased by 6.5 percent compared to the previous week, and is at its highest level since October 2005. Refinancing’s share of mortgage activity increased to 48 percent of total applications from 46.3 percent the previous week. Refinancing’s share of total applications is at its highest level since February 2005.

Other changes

The survey also found that the purchase index increased by 2.7 percent; the seasonally-adjusted conventional index increased by 4.3 percent; and the seasonally adjusted government index increased by 3.4 percent.

The four-week moving average for the seasonally-adjusted market index is up 2.6 percent. The four-week moving average is up 1.8 percent for the purchase index and is up 3.7 percent for the refinance index.

The survey covers approximately 50 percent of all U.S. retail residential mortgage originations, and has been conducted weekly since 1990. It includes responses from mortgage bankers, commercial banks and thrifts.[[In-content Ad]]