Mortgage rates and applications both fall for the week

The Mortgage Bankers Association's Weekly Mortgage Applications Survey for the week ending November 18 found applications decreased 1.2 percent from the week before and the refinance index decreased 4 percent, reaching its lowest level since July 29.

The purchase index increased 8.2 percent compared with week before,marking its highest level since August 12. The refinance portion of the mortgage activity decreased to 75.9 percent from 77.3 percent the previous week, which is the lowest refinance share since September 9. The adjustable rate mortgage share of the activity decreased 5.7 percent from 6.1 percent the week before, while the government portion of the refinance activity increased 13 percent.

According to the LendingTree Weekly Mortgage Rate Pulse, mortgage rates also dropped for the week. The report found the average 30-year fixed mortgage rate fell to 4.30 percent compared with 4.57 percent the week before, and the 15-year fixed mortgage rate dropped to 3.25 percent from 3.49 percent.

HSH.com also reported decreased mortgage rates for the week, saying the low rates should help the housing market by making properties more affordable.

"For some, a refinance will free up funds for holiday gifts and celebration," said Keith Gumbinger, vice president of HSH.com. "For others, it will be a chance to own a home before the new year comes."

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