Mortgage loan application volume rose 4.9% last week, the Mortgage Bankers Association’s (MBA) weekly survey reports.
Unadjusted, the purchase index increased 16% over last week. Mortgage application volume fell by 1.9%, with purchase applications rising 2%. On an unadjusted basis, purchase applications increased 12% over the week before, 13% lower than the year before. The share of refinance applications rose 7% and was 5% lower year-over-year.
The numbers are in line with an upward trend that began last week when loan applications bounced back from a low point.
“There was a resurgence in mortgage applications the week after Labor Day, with activity overall at its highest level in over a month, and purchase applications jumping to a high last seen in April 2021,” MBA Associate Vice President of Economic and Industry Forecasting Joel Kan said.
“Housing demand is strong heading into the fall, despite fast-rising home prices and low inventory. The inventory situation is improving, with more new homes under construction and more homeowners listing their homes for sale. Despite this week’s increase, purchase applications were still 13 percent lower than the same week a year ago.”
“Homeowners acted while rates remained low at 3.03 percent. This week’s refinance gain of 7 percent was driven heavily by an increase in FHA and VA applications,” Kan added.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances remained unchanged at 3.03%. The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances decreased to 3.11% from 3.13%
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 3.07% from 3.04%.
Here are some highlights from the survey:
- Refinance share of mortgage activity: 66.2% (+1.3%)
- FHA share of total applications: 11.5% (+1.6%)
- VA share: 10.4% (+0.2%)
- USDA share: 0.5% (+0.1%)