Mortgage applications increased last week in both new purchases and refinance applications as some credit-worthy buyers scored mortgage rates under 3 percent, according to the latest mortgage applications survey from the Mortgage Bankers Association (MBA).
MBA’s market composite index — which is a measure of total mortgage loan application volume — jumped 4.1 percent from the week prior.
“Mortgage applications increased last week despite mixed results from the various rates tracked in MBA’s survey,” Joel Kan, MBA’s associate vice president of economic and industry forecasting, said in a statement. “The average 30-year fixed rate mortgage rose slightly to 3.20 percent, but some creditworthy borrowers are being offered rates even below 3 percent.”
The refinance index increased 5 percent from the previous week and was up 122 percent year over year. The seasonally-adjusted purchase index was up 2 percent week over week. The unadjusted purchase index was up 2 percent week over week and was 19 percent higher than the same week last year.
“There continues to be strong homebuyer demand this summer, as home shoppers have returned to the market in many states,” Kan said. “Purchase activity increased again last week and was up 19 percent compared to last year – the ninth straight week of year-over-year increases.”
The increase in refinance applications outpaced the share of new purchases, increasing the total refinance share of mortgages to 64.8 percent of total applications, up from 64.2 percent.