Home loan applications in the United States increase in the first week of August 2020
Home loan applications increased last week, although concerns about supply and the economy persist.
The volume of home purchase requests increased by 2%, seasonally adjusted, compared to the previous week.
The measure, known as the Buy Index, is tracked in the Mortgage Bankers Association’s weekly survey of 75 percent of the residential mortgage market. The index has seen a decline in the last few weeks of July, but year over year it is up 22%, according to Joel Kan, head of MBA forecasts. This is the twelfth week in a row that the purchasing index has recorded annual gains.
30-year fixed-rate mortgage rates also hit an all-time high in the history of the weekly MBA survey, which has been ongoing since 1990 for compliant and jumbo balances. The 30-year rate for loans under $ 510,400 fell to 3.06% from 3.14% the week before, while jumbo rates fell to 3.40% from 3.51%.
The low rates have led to an increase in refinancing. The MBA refinance index jumped 9 percent, adjusted, from the previous week, and up 47 percent year-over-year.
Refinancing represented 66% of MBA applications surveyed in the first week of August. This is the highest level of refinancing activity since April, according to Kan.
The overall MBA index of all home mortgage applications rose 6.8 percent adjusted during the last week of July.
Nonetheless, Kan warned that “the gradual slowdown in improving labor market and tight housing stock remains a concern for months to come.”
Write to Erin Hudson at [email protected]