WASHINGTON (11/13/14)--Despite a second straight week of rising mortgage purchase applications, the overall composite index from the Mortgage Bankers Association's weekly mortgage applications survey fell 0.9% for the week ending Nov. 7 (Economy.com Nov. 12).
The drop was fueled by a 1.9% decline in refinance applications, which sit 19.7% below levels seen last year at this time.
Further, while purchase applications jumped 1.1% for the week, they have fallen 6.4% over the past month and are 12.5% behind annually.
"Mortgage activity remains tepid and is stuck near its lowest level in 14 years," said Michael McGrane, Moody's analyst (Economy.com). "After picking up in the middle of October, refinance activity has stalled again and is unlikely to advance much further."
The contract rate for 30-year fixed-rate mortgages rose 2 basis points to 4.19% for the week, which is 25 basis points behind its year-ago level.
The contract rate for 30-year fixed-rate jumbo mortgages remained at 4.13% for the week, and the five-year adjustable-rate mortgage rate fell 3 basis points down to 3.05%, falling 6 basis points below levels seen at this time last year.