Mortgage applications increased for the week ending October 2, driven by a surge in refinance requests, according to a report released Wednesday by the Mortgage Bankers Association.
Overall, mortgage applications increased 4.6 percent from a week earlier – as refinance applications increased 8 percent and 50 percent from a year ago. Purchase applications slid 1 percent but were 21 percent higher than a year ago.
The refinance share of mortgage activity increased to 65.4 percent of total applications from 63.3 percent the previous week. The adjustable-rate mortgage share remained unchanged at 2.2 percent of total applications.
“There are signs that demand is waning at the entry-level portion of the market because of supply and affordability hurdles, as well as the adverse economic impact the pandemic is having on hourly workers and low-and moderate-income households,” Kan said. “As a result, the lower price tiers are seeing slower growth, which is contributing to the rising trend in average loan balances.”