Mortgage applications increased 1.2 percent for the week, according to the latest report released Wednesday by the Mortgage Bankers Association.
The MBA reports that the Refinance Index increased 4 percent from the previous week and was 2 percent lower than the same week last year. The unadjusted Purchase Index decreased 4 percent compared with the previous week and was 2 percent higher than the same week one year ago.
The refinance share of mortgage activity increased to 63.3 percent of total applications from 61.3 percent the previous week. The adjustable-rate mortgage share of activity increased to 3.9 percent of total applications.
“There continues to be strong demand for buying a home, but persistent supply shortages are constraining purchase activity, and building material shortages and higher costs are making it more difficult to increase supply,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “As a result, home prices and average purchase loan balances continue to rise, with the average purchase application reaching $411,400 – the highest since February.”