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Home Purchase Applications Hit Highest Since September Despite Slight Rate Uptick

Markets now watch for rate swings with the release of postponed economic reports.

Overview

  • Seasonally adjusted purchase applications rose about 6% from the prior week to the strongest pace since September; the unadjusted index was 31% higher than a year earlier.
  • The MBA’s average 30-year fixed conforming contract rate ticked up to 6.34% from 6.31%, remaining roughly 52 basis points below the year-ago level.
  • Refinance applications fell 3% week over week but stayed about 147% above last year, with refinances comprising 55.6% of total applications.
  • Adjustable-rate mortgages accounted for 7.8% of activity, and purchase gains spanned conventional, FHA and VA loans as shoppers focus on markets with more inventory and slower price growth.
  • Rates were relatively steady during the shutdown, and volatility could pick up as delayed data arrive; a separate Zillow reading placed the 30-year average near 5.99% on Nov. 13.