Mortgage Applications Increase Amid Low Rates

People are still applying for mortgages at a rate significantly higher than last year.

Mortgage applications were up 6.8 percent last week from a week earlier – while purchase applications were up 22 percent from the same year ago and refinance applications were up 47 percent from a year ago, according to a report released Wednesday by the Mortgage Bankers Association.

“While this was still positive news for the purchase market, the gradual slowdown in the improvement in the job market and tight housing inventory remain a concern for the coming months, even as low mortgage rates continue to provide support,” said Joel Kan, MBA’s Vice President of Economic and Industry Forecasting.

The refinance share of mortgage activity increased to 65.7 percent of total applications from 63.9 percent the previous week. The adjustable-rate mortgage share of activity decreased to 2.7 percent of total applications.