Applications for mortgages to buy homes drop

Decrease came as refinancing applications picked up

National /
Jul.July 15, 2020 07:00 AM
According to the report, purchase applications are down while refinancing is up (iStock)

Purchase applications were down last week while refinancing rose (iStock)

Homebuyers took some time off last week as homeowners got busy.

An index tracking the volume of mortgage applications to buy homes fell last week by 6 percent, seasonally adjusted, from the first week of July.

The metric, known as the purchase index, is based on a weekly survey by the Mortgage Bankers Association.

Despite last week’s drop, Joel Kan, the group’s executive in charge of industry forecasting, said the volume of purchases applications was up 15 percent compared to the same week a year ago. It marked the eighth week in a row the purchase index saw year-over-year growth, he said.

Meanwhile, refinancing activity increased. MBA’s index tracking the volume of applications to refinance increased 12 percent, adjusted, compared to the week before. It was up 107 percent year-over-year.

The prior week, the refinance index remained flat after two weeks of declines.

Kan attributed last week’s gain to the 30-year fixed mortgage rate falling 7 basis points to 3.19 percent, a record low in the history of the survey, which has been conducted since 1990. Jumbo rates ticked up to 3.53 percent from 3.52 percent last week.

Refinance loan balances increased to $315,900, a size not seen since March, according to Kan.

MBA’s overall index, which measures all manner of home-loan applications for 75 percent of the residential mortgage market, saw a 5 percent increase last week. Refinancing made up 64 percent of the total applications tracked by the composite index last week.

Write to Erin Hudson at [email protected]


Related Articles

arrow_forward_ios
Skyline Tower in Long Island City and 200 East 83rd Street (Hill West, Rockefeller Group)
Manhattan logs busiest month for new development sales since April
Manhattan logs busiest month for new development sales since April
East Village landlord collected rent from deceased CEO’s account, lawsuit says
East Village landlord collected rent from deceased CEO’s account, lawsuit says
East Village landlord collected rent from deceased CEO’s account, lawsuit says
Tech entrepreneur behind record-breaking $22.5M Chelsea townhouse sale
Tech entrepreneur behind record-breaking $22.5M Chelsea townhouse sale
Tech entrepreneur behind record-breaking $22.5M Chelsea townhouse sale
(iStock/Illustration by Kevin Rebong for The Real Deal)
Watchdog org: Put home-sale commissions in buyers’ hands
Watchdog org: Put home-sale commissions in buyers’ hands
Photo Illustration of Elon Musk (Getty)
Musk could save $2B in California taxes on Texas move
Musk could save $2B in California taxes on Texas move
The year-over-year rise in home prices was just below the 19.8 percent annual rise in August. (iStock)
Home prices up 20%, but buyers, take heart
Home prices up 20%, but buyers, take heart
Landlords were less likely to respond to renters they thought were African American or Latino. (iStock)
Landlords more likely to ignore applicants of color
Landlords more likely to ignore applicants of color
Newest unicorn is property-services startup Lessen
Newest unicorn is property-services startup Lessen
Newest unicorn is property-services startup Lessen
arrow_forward_ios

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

Loading...