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Mortgage Applications Rise 5% as Rates Set New Record Low 3.19%

Mortgage Applications Rise 5% as Rates Set New Record Low 3.19%
(FLYNT/Dreamstime)

By    |   Wednesday, 15 July 2020 11:18 AM

Demand for mortgages rose as home-loan interest rates continued to inch to new record lows.

Total mortgage application volume rose 5.1% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.

The refinance index increased 12 percent from the previous week and was 107 percent higher than the same week one year ago.

"Mortgage rates continued their downward trend, with the 30-year fixed rate falling 7 basis points to 3.19 percent - another record low in MBA's survey and 63 basis points lower than the recent high in late March. The drop in rates led to a jump in refinance activity to the highest level in a month, with refinance loan balances also climbing to a high last seen in March," said Joel Kan, MBA's Associate Vice President of Economic and Industry Forecasting.

"Purchase applications fell over the week but remained 15 percent higher than a year ago - the eighth consecutive week of year-over-year increases. Purchase activity remains relatively strong, despite the continued economic uncertainty and high unemployment caused by the ongoing pandemic."

The refinance share of mortgage activity increased to 64.2 percent of total applications from 60.1 percent the previous week.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($510,400 or less) decreased to 3.19 percent from 3.26 percent.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 2.70 percent from 2.77 percent.

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Total mortgage application volume rose 5.1% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.
mortgage, applications, home, loan, rates
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2020-18-15
Wednesday, 15 July 2020 11:18 AM
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