Size of home purchase loans hits record high

Mortgage applications to buy homes rose by 5%

National /
Jul.July 08, 2020 09:10 AM
The final week of June saw the average loan size hit $360,300, a record high in the history of MBA’s purchase index (iStock)

The final week of June saw the average loan size hit $360,300, a record high in the history of MBA’s purchase index (iStock)

Homebuyers celebrated before the July 4 holiday weekend by applying for mortgages.

An index tracking applications to buy single-family homes increased 5 percent last week, seasonally adjusted, from the week prior.

The Mortgage Bankers Association metric, known as the purchase index, fell for the last two weeks in June.

Joel Kan, MBA’s executive at the helm of industry forecasting, called last week’s rebound a “recovery,” noting that it was the highest level of purchase applications in nearly a month and volume was up 33 percent year over year.

“The average purchase loan size increased to $365,700 – also another high – as borrowers contend with limited supply and higher home prices,” he said in a statement.

The final week of June saw the average loan size hit $360,300, a record high in the history of MBA’s purchase index, which has been measured weekly since 1990.

The 30-year fixed mortgage rate hit a new low of 3.26 percent, down from 3.29 percent in the last week of June. Jumbo rates dropped to 3.52 percent from 3.59 percent.

Refinancing activity also saw a bump. MBA’s index tracking refinance applications increased 0.4 percent in the first week of July compared to the week before. That’s a 111 percent year-over-year jump.

MBA’s overall index, which encompasses all applications and covers 75 percent of the residential mortgage market, rose 2.2 percent last week.

Write to Erin Hudson at [email protected]


Related Articles

arrow_forward_ios
(iStock)
Canada’s surging housing market be peaking
Canada’s surging housing market be peaking
From left: 909 Third Avenue, 79 Fifth Avenue, 240 West 37th Street and 27 East 62nd Street (VNO, Cercone Exterior Restoration, Google Maps)
These were the largest Manhattan real estate loans in April
These were the largest Manhattan real estate loans in April
Of the 110 metro areas with at least half a million people, 29 saw losses in 2020. (iStock)
More urban areas lost population in 2020
More urban areas lost population in 2020
Zillow CEO Rich Barton (Getty)
Zillow profits hit record $52M in Q1
Zillow profits hit record $52M in Q1
(Getty, iStock/Illustration by Alexis Manrodt for The Real Deal)
Renters prepare for eviction crisis as aid is held up
Renters prepare for eviction crisis as aid is held up
2468 Kenmore Street in East Meadow (Google Maps)
Long Island man evades eviction for 20 years
Long Island man evades eviction for 20 years
Lenders are being stingy about granting home equity lines of credit. (iStock)
Home values are up, but just try getting a line of credit
Home values are up, but just try getting a line of credit
Every region except the Midwest saw month-over-month and year-over-year increases in pending sales. (iStock)
Pending home sales rebound
Pending home sales rebound
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...