A decline in mortgage rates helped propel mortgage demand up 5.5% for the week ending November 5th, according to the Mortgage Bankers Association…(MBA)
- REFIS were up 7% from the previous week but were still 28% lower than the same time one year ago.
- PURCHASES were up 3% from one week earlier but were still down 4% lower than the same time one year ago.
NOTE: The jump in refis increased the share of refinances to 63.5% of total applications from 61.9% from the previous week.
Mortgage rates fell for the second week in a row…
- 30-YR: The average contract interest rate fell 8 basis points to 3.16% which is still 18 basis points higher than the same time one year ago.
- 15-YR: The average contract interest rate fell 6 basis points to 2.52% which is3 basis points lower than the same time one year ago.
Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting, said although overall activity remains close to January 2020 lows, homeowners acted on the decrease in rates…
- “Refinance activity was up 7 percent overall, with gains in both conventional and government refinances. Additionally, the average loan balance for a refinance application was the highest in a month…Purchase applications were also strong last week, increasing just under 3 percent and down only 4 percent from last year’s pace. The dip in rates might have helped to bring some buyers back into the market, but housing inventory is still extremely low and price growth remains elevated.”