Mortgage applications jumped 16.7 percent during the first week of 2021 to their highest levels since March, according to the latest report released Wednesday by the Mortgage Bankers Association.
The report found that the Refinance Index increased from 20 percent from the previous week and was 93 percent higher than the same week in 2020. The unadjusted Purchase Index was 60 percent higher last week and 10 percent higher than a year ago.
The refinance share of mortgage activity increased to 74.8 percent of total applications from 73.5 percent the previous week. The adjustable-rate mortgage share of activity decreased to 1.6 percent of total applications.
“Booming refinance activity in the first full week of 2021 caused mortgage applications to surge to their highest level since March 2020, despite most mortgage rates in the survey rising last week,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting.