US home mortgage applications decline in first week of November

Applications for US home mortgages fell last week, data released on Wednesday showed.

The Mortgage Bankers Association (MBA) said its seasonally adjusted index of application activity, which covers home purchase demand and refinancing demand, declined 1.3% in the week ended 6 November.

The seasonally adjusted sub-index of refinancing applications slid 2%, while the index of loan requests for home purchases, a key indicator of home sales, rose 0.1% and is 18% higher year-on-year.

The refinance share of mortgage activity remained at 59.5% of total applications from the previous week, as the adjustable-rate mortgage share of activity declined to 6.6% of total applications.

Meanwhile, fixed 30-year mortgage rates increased from 4.01% to 4.12% to reach its highest level since August.

"Mortgage rates were up for the third-consecutive week as markets responded to a stronger-than-expected job market report for October," said Mike Fratantoni, chief economist for the MBA.