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Mortgage Demand From Homebuyers Surges 4 Percent

Mortgage Demand From Homebuyers Surges 4 Percent
(Wutthichai Luemuang/Dreamstime)

By    |   Wednesday, 18 November 2020 01:15 PM

Mortgage applications to purchase a home rose 4% for the week, according to the Mortgage Bankers Association.

The Market Composite Index, a measure of mortgage loan application volume, decreased 0.3 percent on a seasonally adjusted basis from one week earlier.

On an unadjusted basis, the Index decreased 2 percent compared with the previous week. The Refinance Index decreased 2 percent from the previous week and was 98 percent higher than the same week one year ago.

The seasonally adjusted Purchase Index increased 4 percent from one week earlier. 

"Mortgage market activity was mixed last week, despite the 30-year fixed rate mortgage staying below 3 percent. The purchase market recovered from its recent weekly slump, with activity increasing 3 percent and climbing above year-ago levels for the 26th straight week. Housing demand remains supported by the ongoing recovery in the job market, and an increased appetite from households seeking more space because of the pandemic," said Joel Kan, MBA's Associate Vice President of Economic and Industry Forecasting.

"The refinance index decreased last week - driven by sharp declines in FHA and VA applications - but remained a robust 98 percent above a year ago. The average refinance loan balance of $291,000 last week was the lowest since January. Many borrowers with higher loan balances may have acted earlier on in the current refinance wave," Kan said.    

The refinance share of mortgage activity decreased to 69.8 percent of total applications from 70.0 percent the previous week.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($510,400 or less) increased to 2.99 percent from 2.98 percent.

The average contract interest rate for 15-year fixed-rate mortgages increased to 2.59 percent from 2.55 percent.

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Mortgage applications to purchase a home rose 4% for the week, according to the Mortgage Bankers Association.
mortgage, demand, homebuyers, housing, loans, rates
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2020-15-18
Wednesday, 18 November 2020 01:15 PM
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