Mortgage applications jumped 1.6% for the week ending August 20 , according to data from the Mortgage Bankers Association’s weekly survey…(MBA)
- REFIS: The Refinance Index increased 1% from the previous week and was 3% higher than the same week one year ago.
- PURCHASES: The Purchase Index increased 3% from one week earlier but was 16% lower than the same week one year ago.
The jump in demand, not surprisingly, coincided with the first drop in rates we have seen in 3 weeks…
- 30-YR: The average contract interest rate fell 3 basis point to 3.03% which is
- 15-YR: The average contract interest rate fell 3 basis points to 2.38% which is
NOTE: The refinance share of mortgage activity remained unchanged from the previous week at 67.3 percent of total applications
Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting, said the jump in purchases could be a good sign for first-time homebuyers…
- “The purchase index was at its highest level since early July, despite still continuing to lag 2020’s pace. There was also some easing in average loan sizes, which is potentially a sign that more first-time buyers looking for lower-priced homes are being helped by the recent uptick in for-sale inventory for both newly built homes and existing homes.”