Mortgage loan apps drop to lowest levels since 1997, MBA report shows

Mortgage loan applications decreased 2.5 percent on a seasonally adjusted basis for the week ending Nov. 13, compared to a week earlier, according to the Mortgage Bankers Association’s weekly report ending Nov. 13. The seasonally adjusted purchase index also dropped 4.7 percent from the prior week and is currently at its lowest level since November 1997. The drop comes as interest rates for a 30-year fixed rate mortgage decreased to 4.83 percent from 4.9 percent. The report also shows that the refinance index decreased 1.4 percent week-over-week. However, refinance shares of mortgage activity increased to 72.9 percent of total applications, the highest share since the week ending May 15, from 71.5 percent a week earlier. The weekly report also indicates that interest rates for 15-year fixed-rate mortgages and interest rates for one-year adjustable-rate mortgages decreased slightly, .01 percent and .03 percent, respectively. TRD