Per the Mortgage Bankers Association’s (MBA) survey through the week ending November 3rd, total mortgage activity increased 2.5% from the previous week and the average 30-year fixed-rate mortgage (FRM) rate fell 25 basis points to 7.61%. The FRM rate has decreased by 6 basis points over the past month but has hovered between 7.5% and 8.0% for six consecutive weeks.
The Market Composite Index, a measure of mortgage loan application volume, rose by 2.5% on a seasonally adjusted (SA) basis from one week earlier. Purchasing activity increased 3.0% and refinancing activity increased 1.6% week-over-week.
While the market composite index increased over the week, mortgage activity remains largely muted due to the continuing lack of existing for-sale inventory. The seasonally adjusted purchase index was 20.7% lower than one year ago while the seasonally adjusted refinancing index was 6.9% lower than one year ago.
The refinance share of mortgage activity rose from 31.2% to 31.4% over the week while the adjustable-rate mortgage (ARM) share of activity fell to 9.8% from 10.7%. The average loan size for purchases was $405,200 at the start of November, down from $413,200 over the month of October. The average loan size for refinancing decreased from $247,800 over the month of October to $243,700. The average loan size for an ARM was down at start of November to $742,300 while the average loan size for a FRM fell to $312,400.