Lock ’em in! That seems to be the motto for would-be buyers as mortgage applications saw a decent increase last week amid the largest rate decline since July 2022. According to the Mortgage Bankers Association, mortgage applications increased 2.5 percent from one week earlier for the week ending November 3.
The Refinance Index increased 2 percent from the previous week and was 7 percent lower than the same week one year ago.
“The 30-year fixed mortgage rate dropped by 25 basis points to 7.61 percent, the largest single-week decline since July 2022,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Last week’s decrease in rates was driven by the U.S. Treasury’s issuance update, the Fed striking a dovish tone in the November FOMC statement, and data indicating a slower job market. Applications for both purchase and refinance loans were up over the week but remained at low levels. The purchase index is still more than 20 percent behind last year’s pace, as many homebuyers remain on the sidelines until more for-sale inventory becomes available.”
The refinance share of mortgage activity increased to 31.4 percent of total applications from 31.2 percent the previous week. The adjustable-rate mortgage share of activity decreased to 9.8 percent of total applications.