Mortgage applications in the United States surged 8.1 percent the last week of January from a week earlier, according to a report released Wednesday by the Mortgage Bankers Association.
The Refinance Index increased 11 percent for the week and was 59 percent higher than last year at the same time, while the Purchase Index increased 8 percent for the week and 16 percent for the year.
The refinance share of mortgage activity increased to 71.4 percent of total applications from 70.7 percent the previous week. The adjustable-rate mortgage share of activity remained unchanged at 2.2 percent of total applications.
“After increasing for three consecutive weeks, the 30-year fixed mortgage rate dropped 3 basis points to 2.92 percent. The one-week reversal in the recent upswing in rates drove an increase in both conventional and government refinance activity, as borrowers continue to lock in these historically low rates. MBA’s refinance index hit its highest level since March 2020 and jumped 60 percent year-over-year,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting.