Mortgage applications remain significantly higher than a year ago amid low rates and high demand for houses and refinances, according to the weekly mortgage applications survey released Wednesday by the Mortgage Bankers Association.
For the week ending September 25, purchase applications dropped 2 percent for the week but were 22 percent higher than a year ago. Refinance applications decreased 7 percent for the week and were 52 percent higher than a year ago.
Overall, applications dropped 4.8 percent for the week.
The refinance share of mortgage applications decreased to 63.3 percent from 64.3 percent the previous week. The adjustable-rate mortgage share of activity remained unchanged at 2.2 percent of total applications.
“Even as pent-up demand from earlier in the year wanes, there continues to be action in the higher price tiers, with the average loan balance remaining close to an all-time survey high,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting.