US mortgage rates continued to decline last week prompting an increase in mortgage applications, according to new data from the Mortgage Bankers Association (MBA).
For the week ending November 17, 2023, most mortgage rates decreased. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances decreased to 7.41% from 7.61% in the previous week and a 23-year peak of 8% in mid-October, marking their lowest level in two months.
Mortgage applications increased 3% week-over-week.
MBA deputy chief economist Joel Kan noted that mortgage applications had increased to their highest level in six weeks but remained at very low levels.
“Purchase applications were up almost four percent over the week, on a seasonally adjusted basis, as both conventional and government purchase loans saw increases,” Kan said.
“The average loan size on a purchase application was $403,600, the lowest since January 2023. This is consistent with other sources of home sales data showing a gradually increasing first-time homebuyer share.”
Refinance applications rose 1.6% last week but as Kan noted, the level of refinances continues to be below historical averages as the majority of borrowers already have a rate well below the current market rates.
The MBA survey has been carried out weekly since 1990 and covers more than 75% of all US retail residential mortgage applications.
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