The report also revealed that the average purchase loan size rose to $439,200, its highest level in nearly a month. The survey highlighted growth in available housing inventory and steady economic conditions as factors keeping buyers engaged.
Refinancing slows, purchase activity surges
Refinance activity slowed, with the Refinance Index down 3% from the prior week, though it remained 119% higher than the same week in 2023. This year’s results, however, were compared to a Thanksgiving holiday week last year. The share of refinance applications dropped to 38.8% of total applications, down from 41% the previous week.
Adjustable-rate mortgages (ARMs) accounted for 6.6% of total applications, up from 6.5% the week before. The shares of FHA and VA applications also decreased slightly, while USDA loan activity rose marginally, the MBA noted.
Interest rates show mixed trends
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) decreased to 6.86% from 6.90%, while rates for jumbo loans fell to 6.97% from 7.03%. Rates for FHA-backed 30-year fixed loans also declined to 6.61% from 6.68%.
Interest rates for 15-year fixed-rate mortgages dipped to 6.29% from 6.32%, while the rate for 5/1 ARMs remained steady at 6.34%.
