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After two weeks of slight declines, mortgage applications regained their footing last week, rising 1.7% from the week prior, according to a report from the Mortgage Bankers Association.
The refinance index led the rebound after it gained 3% from the previous week, however, according to Joel Kan, MBA’s associate vice president of economic and industry forecasting, refinance activity has been somewhat volatile over the past few months. Nevertheless, refis remained 80% higher than the same time a year ago.
“With the 30-year fixed rate at MBA’s all-time survey low of 3%, conventional refinances rose 5%. However, the government refinance index decreased for the first time in a month, driven by a slowdown in VA refinance activity,” Kan said.
Overall, refinances gained to two-thirds’ share of mortgage activity last week after they rose to 66.7% from 66.1% the week prior.
On a seasonally adjusted basis, applications for purchases rose 0.2% and jumped 24% compared to last year as average loan size reached another record high at $372,600, the report said.
“These results highlight just how strong the upper end of the market is right now, with outsized growth rates in the higher loan size categories. Furthermore, housing inventory shortages have pushed national home prices considerably higher on an annual basis,” Kan said.
Here is a more detailed breakdown of this week’s mortgage application data: