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Mortgage Applications Jump 10% as Home Loan Rates Rise

Mortgage Applications Jump 10% as Home Loan Rates Rise
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By    |   Wednesday, 13 November 2019 05:05 PM

Mortgage application volume rose 9.6% last week compared with the previous week, according to the Mortgage Bankers Association.

The Market Composite Index, a measure of mortgage loan application volume, increased 9.6 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 9 percent compared with the previous week.

The Refinance Index increased 13 percent from the previous week and was 188 percent higher than the same week one year ago. The seasonally adjusted Purchase Index increased 5 percent from one week earlier. The unadjusted Purchase Index increased 2 percent compared with the previous week and was 15 percent higher than the same week one year ago.

"Mortgage applications increased to their highest level in over a month, as both purchase and refinance activity rose despite another climb in mortgage rates. Positive data on consumer sentiment, and growing optimism surrounding the U.S. and China trade dispute, were behind last week's rise in the 30-year fixed mortgage rate to 4.03 percent," said Joel Kan, Associate Vice President of Economic and Industry Forecasting.

"Refinance applications jumped 13 percent to the highest level in five weeks, as conventional, FHA, and VA refinances all posted weekly gains. With rates still in the 4 percent range, we continue to expect to see moderate growth in refinance activity in the final weeks of 2020."

Added Kan, "Last week was a solid week for homebuyers. Purchase applications increased 2 percent and were 15 percent higher than a year ago. Low supply and high home prices remain a key characteristic of this fall's housing market, which is why the largest growth in activity continues to be in loans with higher loan balances."

The refinance share of mortgage activity increased to 61.9 percent of total applications from 59.5 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 4.9 percent of total applications.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) increased to 4.03 percent from 3.98 percent.

The average contract interest rate for 15-year fixed-rate mortgages increased to 3.43 percent from 3.38 percent.

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Mortgage application volume rose 9.6% last week compared with the previous week, according to the Mortgage Bankers Association.
mortgage, applications, home, loans
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2019-05-13
Wednesday, 13 November 2019 05:05 PM
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