The Mortgage
Bankers Association (MBA) reported on
Wednesday that the mortgage application volume in the U.S. decreased by 0.7 per cent in the week ended December 17, following a 5.4
per cent surge the week before. This
marked the first drop in total mortgage application volume in six weeks.
According to
the MBA’s data, last week’s decline in mortgage applications reflected
a 2.6 per cent fall in mortgage refinance applications that was partly offset by a 1.4 per cent gain in mortgage applications to
purchase a home.
The report also
revealed that the average fixed 30-year mortgage rate increased from 6.67 per cent to 6.75
per cent, the highest level in three weeks.
Commenting on
the latest survey results, Joel Kan, MBA’s vice president and deputy chief
economist, noted that conventional and Veteran Affairs (VA) purchase
applications drove last week’s increase in purchase activity on a weekly and annual
basis. "Buyers remained active in the purchase market, helped by gradually
improving inventory conditions and a more positive outlook on the economy and
job market," he added.