Real estate data from the Mortgage Bankers Association (MBA) reveals the Market Composite Index decreased 11.7 percent in the week ending November 25. This drop in mortgage applications does reflect adjustments due to the effect of Thanksgiving.
The MBA's Weekly Mortgage Applications Survey found refinancing was down 15.3 percent and purchases were 0.8 percent lower than the week earlier.
The four-week moving average was also lower for both the Refinancing and Market indices, although it rose 2.37 percent for the Purchase Index. Refinancing took up a 2-percent smaller share of of total mortgage application activity during the week, reaching its lowest level since July at 73.9 percent.
Fixed-rate mortgages with 30-year terms saw average contract interest rates drop slightly. Mortgages backed by the Federal Housing Administration experienced their lowest contract interest rate since the first month of 2011 at 4 percent, with points decreasing, though they increased slightly for other 30-year, fixed-rate mortgages.
Adjustable-rate mortgages, on the other hand, accounted for a slightly increased percentage of total applications. Those measured by the MBA, 5/1 ARMs had lower points, contract interest rates and effective interest rates. Investors were also responsible for a slightly larger percentage of purchase loan application, particularly in New England.