The
Mortgage Bankers Association (MBA) reported on Wednesday the mortgage
application volume in the U.S. surged 5.5 percent in the week ended November 5,
following a 3.3 percent drop in the previous week. This marked the largest gain
in total mortgage application volume since late July.
According
to the report, refinance applications climbed 7.4 percent, while applications
to purchase a home rose 2.7 percent.
Meanwhile,
the average fixed 30-year mortgage rate dropped from 3.30 percent to 3.16
percent, the lowest level in five weeks.
“Although
overall activity remains close to January 2020 lows, homeowners acted on the
decrease in rates,” noted Joel Kan, MBA Associate Vice President of Economic
and Industry Forecasting. “Refinance activity was up 7 percent overall, with
gains in both conventional and government refinances. Additionally, the average
loan balance for a refinance application was the highest in a month.”