Mortgage apps, refi activity drop during holiday week

"The refinance index decreased 4% from the previous week and was 109% higher than the same week one year ago. The refinance share of mortgage activity decreased to 53.0% of total applications from 53.4% the previous week. The seasonally adjusted purchase index increased 3% from one week earlier. The unadjusted purchase index decreased 32% compared with the previous week and was 17% higher than the same week one year ago."

"Mortgage rates moved lower in line with Treasury yields, which declined on data showing a weaker labor market and declining consumer confidence. The 30-year fixed mortgage rate declined to 6.32% after steadily increasing over the past month, said Joel Kan, MBA's vice president and deputy chief economist. After adjusting for the impact of the Thanksgiving holiday, refinance activity decreased across both conventional and government loans, as borrowers held out for lower rates."

"The adjustable-rate mortgage (ARM) share of activity increased to 8.0% of total applications. All loan products other than ARMs saw decreases; the Federal Housing Administration (FHA) share of total applications decreased to 18.3% from 18.8% the week prior, the U.S. Department of Veterans Affairs (VA) share of total applications decreased to 15.0% from 15.4% and the U.S. Department of Agriculture (USDA) share of total applications decreased to 0.3% from 0.4%."

The refinance index fell 4% from the prior week but remained 109% higher than the year-ago week, with refinance share at 53.0% of applications. The seasonally adjusted purchase index rose 3% week-over-week while the unadjusted purchase index fell 32% from the prior week and stood 17% above last year. Treasury yields and mortgage rates declined following weaker labor-market and consumer-confidence data, bringing the 30-year fixed rate to 6.32%. Holiday-adjusted data show decreased refinance activity across conventional and government loans as borrowers awaited lower rates. ARM share rose to 8.0% while FHA, VA and USDA shares edged down; conforming, jumbo and FHA 30-year rates also decreased.

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