Mortgage applications for home purchases increased for the eighth straight week as the housing market continues to take steps forward from the depths of the coronavirus pandemic.
For the week ending June 5, purchase applications increased 15 percent on unadjusted basis over the week before and 13 percent than a year ago. Overall, all mortgage applications increased 20 percent for the week on an unadjusted basis – and 13 percent over the same week a year ago.
“Fueled again by low mortgage rates, pent-up demand from earlier this spring, and states reopening across the country, purchase mortgage applications and refinances both increased. The recovery in the purchase market continues to gain steam, with the seasonally adjusted index rising to its highest level since January,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting.
The Refinance Index increased 11 percent from the previous week and was 80 percent higher than the same week one year ago. The refinance share of mortgage activity increased to 61.3 percent of total applications from 59.5 percent the previous week. The adjustable-rate mortgage share of activity decreased to 3.1 percent of total applications.
“Refinances moved higher for the first time in nearly two months, with both conventional and government applications rising and the overall index coming in 80 percent above year-ago levels,” Kan said.