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
Placeholder image
Sugimoto-curated 79th floor at 432 Park quietly hits market
Sugimoto-curated 79th floor at 432 Park quietly hits market
Sharon Davis and 9 East 81 Street (Google Maps, iStock)
UES townhouse trades 40% below latest appraisal
UES townhouse trades 40% below latest appraisal
The average price of a London home rose above 500,000 pounds, or roughly $685,000, for the first time. (Getty)
London home prices hit new high
London home prices hit new high
(Illustration by The Real Deal)
Americans bought 5.6M homes last year — the most since the bubble
Americans bought 5.6M homes last year — the most since the bubble
Randy Mastro and 21 East 83rd Street (Photos via Getty; Google Maps)
Former deputy mayor Randy Mastro, lawyer in Lucerne controversy, lists UES home
Former deputy mayor Randy Mastro, lawyer in Lucerne controversy, lists UES home
Overall, the number of housing units that started construction last year was up 7 percent from 2019. (iStock)
Residential construction had busiest year since 2006: MBA
Residential construction had busiest year since 2006: MBA
Common Projects sneaker designer Peter Poopat bought the home in December. (Getty, Brown Harris Stevens)
$6.5M Fort Greene townhouse sale breaks neighborhood record
$6.5M Fort Greene townhouse sale breaks neighborhood record
(iStock)
Homebuilder sentiment falls for second month in a row
Homebuilder sentiment falls for second month in a row
arrow_forward_ios

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

Loading...