U.S. Mortgage Applications Decline 11.7 Percent: MBA

U.S. mortgage applications decreased on a seasonally adjusted basis by 11.7 percent in the week ending Nov. 25, according to the Mortgage Bankers Association (MBA).

The MBA's Refinance Index decreased by 15.3 percent from the previous week. Refinances made up 73.9 percent of all applications, down from 75.9 percent. The seasonally adjusted Purchase Index decreased by 0.8 percent from the previous week.

The four week moving average for seasonally adjusted Market Index is down 3.29 percent, while the Purchase index is up 2.37 percent. The Refinance Index is down 4.92 percent.

The average interest rate for 30-year fixed-rate mortgages of $417,500 or less decreased to 4.21 percent from 4.23. The average interest rate for 30-year fixed-rate mortgages greater than $417,500 fell to 4.55 percent from 4.59 percent.

The average interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 4 percent, the lowest rate since January, from 4.05 percent.

The average interest rate for 15-year fixed-rate mortgages was flat at 3.58 percent.

Freddie Mac recently reported that the overall average 30-year fixed-rate mortgage has an interest rate of 3.98 percent, one of the lowest levels on record. However, the weak economy has dampened home sales, which remain weak.