Mortgage applications increased last week amid record-low interest rates and high demand for a limited number of homes on the market, the Mortgage Bankers Association announced Wednesday.
MBA’s weekly survey found that applications overall increased 3.9 percent, with refinances up 5 percent for the week and 79 percent over a year ago. Purchase applications declined 2 percent and were up 19 percent over the same period of 2019.
“Amidst strong competition for a limited supply of homes for sale, as well as rapidly increasing home prices, purchase applications increased for both conventional and government borrowers,” said Joel Kan, MBA’s associate vice president of industry and economic forecasting.
The refinance share of mortgage activity increased to 71.1 percent of total applications from 69.8 percent the previous week. The adjustable-rate mortgage share of activity remained unchanged at 1.9 percent of total applications.