Mortgage Applications Rise 6.2 Percent as the 30-Year Fixed Rate Falls to 7.21 Percent for a Fourth Straight Week

U.S. mortgage applications rose 6.2 percent last week. The 30-year fixed rate fell for a fourth straight week to 7.21 percent, bringing applications back.

The Mortgage Bankers Association said on Nov. 11 that total application volume for the week ending Nov. 6 rose 6.2 percent on a seasonally adjusted basis. Purchase applications rose 8 percent and refinance applications rose 5 percent.

The average 30-year fixed rate fell to 7.21 percent from 7.30 percent. That is down from 7.50 percent four weeks ago and the lowest since mid-September. A year ago the rate averaged 5.99 percent.

Joel Kan, the association’s vice president and deputy chief economist, said rates declined for a fourth straight week and the 30-year fixed rate reached its lowest since mid-September.

Purchase applications are still 18 percent below a year ago, however. With rates near 7 percent, many households are still waiting on the sidelines.

Freddie Mac’s weekly survey is due out today. Last week its 30-year fixed rate fell to 7.18 percent from 7.24 percent, a third straight weekly decline.

One caution is that the daily rate jumped 12 basis points on Tuesday to 7.30 percent. Treasury yields rose after October consumer prices came in hotter than expected.