Mortgage Apps Up For 7th Straight Week

Seven weeks and counting.

Mortgage applications for new home purchases increased by 5 percent for the week ending May 29 – the seventh straight week purchase applications have increased, according to a report released Wednesday by the Mortgage Bankers Association. The MBA’s Purchase Index also was 18 percent higher than the same week a year ago.

“The pent-up demand from homebuyers returning to the market continues to support a recovery from the weekly declines observed earlier this spring,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “However, there are still many households affected by the widespread job losses and current economic downturn. High unemployment and low housing supply may restrain a more meaningful rebound in purchase applications in the coming months.”

The Refinance Index decreased 9 percent from the previous week but remained 137 percent higher than the same week in 2019.

The refinance share of mortgage activity decreased to 59.5 percent of total applications from 62.6 percent the previous week. The adjustable-rate mortgage share of activity increased to 3.5 percent of total applications.