Refinance Market Remains Strong

While mortgage applications overall were relatively flat, significantly more American homeowners continue to work to take advantage of low interest rates by refinancing their mortgages.

The Mortgage Bankers Association weekly survey Wednesday found that mortgage applications decreased 0.7 percent from a week earlier – with the number of refinance applications slipping 0.3 percent while remaining 44 percent higher than a year ago.

Purchase applications dropped 1 percent and were 24 percent higher than a year ago.

“Refinance and purchase activity continue to run well ahead of last year’s pace, fueled by record-low rates and strong homebuyer demand,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “Housing supply is a challenge for many aspiring buyers, but activity should continue to stay strong the rest of the year.”

The refinance share of mortgage activity increased to 65.6 percent of total applications from 65.4 percent the previous week. The adjustable-rate mortgage share of activity decreased to 2 percent of total applications.