The market composite index, which measures loan applications, rose 2% for the week ending Dec. 3, after a week-earlier decline of 7.2%, which included an adjustment for Thanksgiving. The refinance index increased 9% from the previous week and was 37% down from a year ago.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances $548,250 or less went down to 3.3% from 3.31% on a weekly basis.
"Mortgage rates declined for the first time in a month, prompting a pickup in refinancing, with government refinances increasing more than 20% over the week," said Joel Kan, MBA's associate vice president of economic and industry forecasting, in a statement.
The average contract interest rate for 30-year fixed-rate mortgages with loan balances of over $548,250 went up to 3.33% from 3.27% in the previous week. Fixed-rate mortgages backed by the Federal Housing Administration tumbled to 3.35% from 3.42%, which Kan said drove the surge in government refinances. Rates on 15-year mortgages dipped to 2.62% from 2.63% a week earlier.
Still, the seasonally adjusted purchase index fell 5% in the week, the MBA said. Without adjustments, the index is up 28%, but is down 8% on an annually basis.
"Activity is still close to the highest level since March 2021, which is a positive sign as the year comes to an end," Kan said. "Purchase activity continues to be constrained by a lack of inventory, combined with rapid rates of home-price appreciation and mortgage rates higher than in 2020."
|Epizyme Prices Stock Offering at $1.50 Per Share|
|Romeo Power Files for Up to $350 Million Mixed-Secur...|
|Credo Technology Group Prices IPO at $10/Share|
|Research Alert: CFRA Keeps Holds Opinion On Shares O...|
|Research Alert: CFRA Maintains Hold Opinion On Share...|