Purchase Apps Dip to 1997 Level: MBA
Mortgage applications fell in two weekly surveys this week. The Mortgage Bankers Association’s (MBA) survey of gross mortgage applications decreased 2.5% on a seasonally adjusted basis for the week ending Nov. 13 compared to the previous week. MBA said its refinance index decreased 1.4% from the previous week and the purchase index was down 4.7%. It’s the sixth straight week that the purchase index declined and now sits at its November 1997 level. Refinance applications took a 72.9% share of total applications, MBA said, up from 71.5% in the previous week. The share of refinance applications is at its highest point since May 15, 2009. Adjustable-rate mortgages took a 5.4% share of activity, down from 5.5% in the previous week. Mortgage Maxx’s survey of applications that’s adjusted to reflect the number of households initiating applications decreased 0.3% for the week ending Nov. 13. The firm warned increased foreclosures and the impending holiday period could further decline applications. “Given the commercial woes poised to crush balance sheets and the outsized and soon to be overwhelming foreclosure/delinquency problem, objects in mirror may be closer than they appear,” Mortgage Maxx said. “300,000 foreclose filings for eight months in a row. Think T-Rex in Jurassic Park." Write to Austin Kilgore.