Tags: mortgage | applications | refinance | housing | homes

Mortgage Applications Rise as Refinance Volume Jumps

Mortgage Applications Rise as Refinance Volume Jumps
(Dreamstime/FLYNT)

By    |   Wednesday, 04 November 2020 04:10 PM

Mortgage applications increased 3.8% from one week earlier as a drop in most loan interest rates brought on an increase in refinance activity, according to the Mortgage Bankers Association.

The Market Composite Index, a measure of mortgage loan application volume, increased 3.8 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 3 percent compared with the previous week.

The Refinance Index increased 6 percent from the previous week and was 88 percent higher than the same week one year ago.

The seasonally adjusted Purchase Index decreased 1 percent from one week earlier. The unadjusted Purchase Index decreased 3 percent compared with the previous week and was 25 percent higher than the same week one year ago.   

"Mortgage rates continue to hover at record lows this fall. The 30-year fixed mortgage rate remained essentially unchanged at 3.01 percent last week, but rates for 15-year fixed-rate loans, FHA loans and jumbo loans all fell to new MBA survey lows," said Joel Kan, MBA's Associate Vice President of Economic and Industry Forecasting.

"The drop in rates spurred an uptick in demand for refinances. Activity increased over 6 percent, with borrowers notably seeking conventional and government loans. After a solid stretch of purchase applications growth, activity decreased for the fifth time in six weeks, but was still over 25 percent higher than a year ago, and has increased year-over-year for six straight months. 2020 continues to overall be a strong year for the housing market."  

The refinance share of mortgage activity increased to 68.7 percent of total applications from 66.7 percent the previous week. 

The FHA share of total applications decreased to 11.1 percent from 11.7 percent the week prior. 

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($510,400 or less) increased to 3.01 percent from 3.00 percent.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 2.55 percent from 2.60 percent.

© 2021 Newsmax Finance. All rights reserved.


   
1Like our page
2Share
Personal-Finance
Mortgage applications increased 3.8% from one week earlier as a drop in most loan interest rates brought on an increase in refinance activity, according to the Mortgage Bankers Association.
mortgage, applications, refinance, housing, homes
323
2020-10-04
Wednesday, 04 November 2020 04:10 PM
Newsmax Media, Inc.
 
Newsmax TV Live

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved