NEW YORK – Mortgage loan application volume fell 14.4% on a seasonally adjusted basis in the week ended November 12, according to the Mortgage Bankers Association weekly mortgage applications survey, released Wednesday, as the cost of mortgages rose.
The refinance index dropped 16.5% from the previous week to its lowest level since July. he purchase index slid 5.0%, after three consecutive increases.
"Rates increased sharply last week due to stronger economic data and lingering uncertainty regarding the structure and impact of the Fed's QE2 program. Mortgage applications, particularly for refinances, dropped in response," said Michael Fratantoni, MBA's Vice President of Research and Economics.
The seasonally adjusted market index four-week moving average fell 2.8%, while the purchase index four-week moving average rose 1.3%, and the refinance index decreased 3.7%.
Refinancings accounted for 80.3% of volume, down from 81.7% the previous week, while adjustable-rate mortgage volume remained 5.3% of total applications.
The average 30-year fixed-rate mortgage interest rate increased to 4.46% from 4.28%, while 15-year fixed-rate mortgages increased to 3.87% from 3.64%.
