Mortgage applications decreased 0.1 percent from one week earlier,according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending November 1, 2019.

The Market Composite Index, a measure of mortgage loan application volume, decreased 0.1 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 1 percent compared with the previous week. The Refinance Index increased 2 percent from the previous week and was 144 percent higher than the same week one year ago. The seasonally adjusted Purchase Index decreased 3 percent from one week earlier. The unadjusted Purchase Index decreased 4 percent compared with the previous week and was 7 percent higher than the same week one year ago.

"U.S. Treasury yields once again exhibited some intraweek volatility before declining sharply toward the end of the week. As a result, mortgage rates decreased, with the 30-year fixed rate falling below 4 percent again," said Joel Kan, Associate Vice President of Economic and Industry Forecasting. "In response to the lower rates, refinance applications climbed 2 percent, as homeowners with larger loan balances helped to keep the average refinance loan size elevated. Purchase applications fell slightly last week but remained almost 7 percent higher than a year ago."

Added Kan, "Amidst persistent supply constraints in the entry-level price range, there's evidence that high-end homebuyers are more active this fall. The average loan size for purchase applications increased to its highest level since May."

The refinance share of mortgage activity increased to 59.5 percent of total applications from 58.0 percent the previous week. The adjustable-rate mortgage (ARM) share of activity remained unchanged at 5.2 percent of total applications.

The FHA share of total applications decreased to 11.8 percent from 12.0 percent the week prior. The VA share of total applications increased to 12.0 percent from 11.8 percent the week prior. The USDA share of total applications remained unchanged from 0.6 percent the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) decreased to 3.98 percent from 4.05 percent, with points remaining unchanged at 0.37 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $484,350) decreased to 3.97 percent from 4.01 percent, with points decreasing to 0.24 from 0.30 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.79 percent from 3.83 percent, with points decreasing to 0.21 from 0.28 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.38 percent from 3.40 percent, with points decreasing to 0.31 from 0.36 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 5/1 ARMs remained unchanged at 3.43 percent, with points decreasing to 0.21 from 0.23 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.