Mortgage applications increased 5.1 percent from the week before as rates continue to sit at historic lows and the housing market pushes its way through the coronavirus pandemic, according to a report released Wednesday by the Mortgage Bankers Association.
For the week ending July 10, the seasonally adjusted Market Composite Index showed a 12 percent increase in refinances and a 5 percent increase in purchase applications (on an unadjusted basis, while it was down 6 percent on an adjusted basis). The Purchase Index was 16 percent higher than the same week a year ago.
“The drop in rates led to a jump in refinance activity to the highest level in a month, with refinance loan balances also climbing to a high last seen in March,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “Purchase applications fell over the week but remained 15 percent higher than a year ago – the eighth consecutive week of year-over-year increases. Purchase activity remains relatively strong, despite the continued economic uncertainty and high unemployment caused by the ongoing pandemic.”
The refinance share of mortgage activity increased to 64.2 percent of total applications from 60.1 percent the previous week. The adjustable-rate mortgage share of activity decreased to 3 percent of total applications.