US Mortgage Activity Falls Again

---

Mortgage applications in the U.S. dropped for the second week in a row, according to the Mortgage Bankers Association. 

Overall mortgage applications dropped 1.8 percent for the week ending November 8. That compares to a drop of 2.8 percent last week, revised from a previously reported 7 percent drop. 

The refinance index decreased 2 percent from the previous week. The refinance share of mortgage activity remained at 66 percent, while the adjustable-rate mortgage share of activity increased to seven percent of all applications. 

The seasonally adjusted purchase index decreased 1 percent from the previous week. 

The second weekly drop in mortgage applications coincides with last week's increase in interest rates, the first in three weeks. 

More from the report:

• The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to 4.44 percent, the highest level in a month, from 4.32 percent, with points increasing to 0.44 from 0.42 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.  The effective rate increased from last week.

• The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) increased to 4.48 percent, the highest level in a month,  from 4.37 percent, with points increasing to 0.34 from 0.26 (including the origination fee) for 80 percent LTV loans.  The effective rate increased from last week.

• The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 4.16 percent from 4.07 percent, with points increasing to 0.32 from 0.22 (including the origination fee) for 80 percent LTV loans.  The effective rate increased from last week.

• The average contract interest rate for 15-year fixed-rate mortgages increased to 3.52 percent, the highest level in a month, from 3.44 percent, with points decreasing to 0.27 from 0.30 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

• The average contract interest rate for 5/1 ARMs increased to 3.11 percent from 3.08 percent, with points decreasing to 0.27 from 0.31 (including the origination fee) for 80 percent LTV loans.  The effective rate increased from last week.