Mortgage applications to purchase a home jumped 9% last week from the previous week and were 28% higher annually, according to the Mortgage Bankers Association.

Applications to refinance a home loan fell 5% for the week, but were an impressive 102% higher than a year ago, the Mortgage Bankers Association said.

"After adjusting for the Thanksgiving holiday, mortgage applications were mixed, with a jump in purchase applications and a decline in refinances. Purchase activity continued to show impressive year-over-year gains, with both the conventional and government segments of the market posting another week of growth," said Joel Kan, MBA's Associate Vice President of Economic and Industry Forecasting.

"Purchase loan amounts continue to be significantly higher than their average over the past decade and hit $375,000 last week, the largest since the inception of MBA's survey in 1990. Housing demand remains strong, and despite extremely tight inventory and rising prices, home sales are running at their strongest pace in over a decade."  

Added Kan, "The sustained period of low mortgage rates continues to spark borrower demand, and the mortgage industry is poised for its strongest year in originations since 2003. The ongoing refinance wave has been beneficial to homeowners looking to lower their monthly payments during these challenging economic times brought forth by the pandemic." 

The refinance share of mortgage activity decreased to 69.5 percent of total applications from 71.1 percent the previous week. 

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($510,400 or less) remained unchanged at 2.92 percent.

The average contract interest rate for 15-year fixed-rate mortgages increased to 2.53 percent from 2.51 percent.

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