Mortgage applications increased 2.1 percent for the week amid low rates and high demand for homes, the Mortgage Bankers Association reported Wednesday in its Weekly Mortgage Applications Survey.
The Refinance Index increased 3 percent from the previous week and was 12 percent lower than the same week one year ago. The unadjusted Purchase Index increased 1 percent from the previous week and was 13 percent higher than the same week one year ago.
The refinance share of mortgage activity increased to 61.3 percent of total applications from 61.0 percent the previous week. The adjustable-rate mortgage share of activity decreased to 3.8 percent of total applications.
“Mortgage rates fell last week to the lowest levels since February, tracking the dip in Treasury yields. The decline in rates helped the refinance index reach its highest level in eight weeks, driven by a 4 percent increase in conventional refinances. Additionally, refinance loan balances increased for the fourth straight week, an indication that higher-balance borrowers acted to take quick advantage of lower rates,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting.