Mortgage loan purchase applications reached their level since 2009 as the housing market continues to make a comeback from the COVID-19 pandemic, the Mortgage Bankers Association announced Wednesday.
Overall, mortgage applications increased 8 percent from a week earlier. Purchase applications increased 2 percent from a week earlier and was 21 percent higher than the same week a year ago. It is the ninth straight week purchase applications have increased.
“The housing market continues to experience the release of unrealized pent-up demand from earlier this spring, as well as a gradual improvement in consumer confidence,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting.
Refinance applications increased 10 percent from the previous week and was 106 percent higher than the same week a year ago.
“Mortgage rates dropped to another record low in MBA’s survey, leading to a 10 percent surge in refinance applications. Refinancing continues to support households’ finances, as homeowners who refinance are able to gain savings on their monthly mortgage payments in a still-uncertain period of the economic recovery,” Kan said.
The refinance share of mortgage activity increased to 63.2 percent of total applications from 61.3 percent the previous week. The adjustable-rate mortgage share of activity decreased to 2.8 percent of total applications.