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Mortgage Apps Slip on Slight Rate Increase

decreasing-twoMortgage applications in the United States fell in November's opening week as interest rates ticked up.

Total mortgage application volume, including both purchase loans and refinances, dipped a seasonally adjusted 0.9 percent for the week ending November 7, according to the Mortgage Bankers Association (MBA). On an unadjusted basis, MBA's applications index fell 2 percent week-over-week.

On the refinance side, applications fell 2 percent on a weekly basis, MBA reported, accounting for 63 percent of total application numbers.

Refinances saw a brief resurgence heading into fall as average mortgage interest rates touched their lowest levels in more than a year, but demand has begun to trend downward again with rates back on the rise. According to MBA, the average interest rate for a 30-year fixed-rate mortgage last week was 4.19 percent, up from 4.17 percent the week prior.

Meanwhile, MBA's seasonally adjusted measure of purchase loan applications rose 1 percent for the week. Removing adjustments, applications for home purchases fell 2 percent, coming up 11 percent short of where they were a year ago at this time.

Government-guaranteed loans picked up a slightly greater share of total applications. According to MBA, applications for loans insured by the Federal Housing Administration (FHA) represented 9.6 percent of total applications, up from 9.5 percent the previous week. Loans backed by the Department of Veterans Affairs also took a slightly higher share at 11 percent from 10.7 percent previously.

About Author: Tory Barringer

Tory Barringer began his journalism career in early 2011, working as a writer for the University of Texas at Arlington's student newspaper before joining the DS News team in 2012. In addition to contributing to DSNews.com, he is also the online editor for DS News' sister publication, MReport, which focuses on mortgage banking news.
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