The 30-year, fixed-rate mortgage hit 3.4 percent last week, a record low for the Mortgage Bankers of America survey.

Mortgage purchases increased 6 percent week-over-week, according to the Market Composite Index, a weekly measure of loan volume published by the Mortgage Bankers Association. Overall, the index increased 1 percent compared to the previous week, due to a week-over-week drop in refinances.

Michael Fratantoni | Photo credit: Mortgage Bankers Association

While the purchase index increased week-over-week, mortgage purchases were still down 19 percent year-over-year. Conversely, despite the week-over-over decline, refinances were up 210 percent year-over-year, due to low mortgage rates.

The Mortgage Bankers Association reported the average rate for a 30-year fixed-rate mortgage last week was 3.40 percent, the lowest since the association began publishing the weekly survey.

“Mortgage application volume was unchanged last week, even as the 30-year fixed-rate mortgage declined to 3.40 percent – a new record in MBA’s survey,” Mike Fratantoni, MBA’s senior vice president and chief economist, said in a statement. “Despite lower rates, refinance applications dropped, as many lenders are offering higher rates for refinances than for purchase loans, and others are suspending the availability of cash-out refinance loans because of their inability to sell them to Fannie Mae and Freddie Mac.”

“Purchase volume increased for the third week in a row, led by strong growth in Arizona, Texas and California,”  Fratantoni added. “Although purchase activity remains almost 19 percent below year-ago levels, this annualized deficit has decreased as more states reopen amidst the apparent, pent-up demand for homebuying.”

Email Patrick Kearns

Show Comments Hide Comments


Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Thank you for subscribing to Morning Headlines.
Back to top
We've updated our terms of use.Read them here×