Refinancings drove up home mortgage apps last week

Purchase applications were flat, though the average loan size hit a new high of nearly $373K

National /
Oct.October 28, 2020 07:00 AM
(Getty, iStock)

(Getty, iStock)

An increase in homeowners’ bids to refinance drove up the volume of mortgage applications last week.

An index tracking home refinance applications increased 3 percent, seasonally adjusted, in the third week of October, compared to the prior week, according to the Mortgage Bankers Association’s weekly survey.

The metric, known as the refinance index, was up 80 percent year-over-year.

MBA’s purchase index, which tracks the number of mortgage applications to buy homes, was essentially flat with an increase of 0.2 percent compared to the week before, breaking a four-week stretch of declines.

Joel Kan, MBA’s head of industry forecasting, maintained that homebuyer demand remains strong, noting that the purchase index last week was still up 24 percent year-over-year and the average purchase loan size hit $372,600, a new record in the history of MBA’s 30-year survey.

“These results highlight just how strong the upper end of the market is right now, with outsized growth rates in the higher loan size categories,” he said in a statement.

The median sales price for the 6.5 million existing homes sold last month was $311,000, while the median price for newly built homes was $326,800.

The high prices are also being driven by severe housing shortages, he noted.

The average 30-year, fixed-rate mortgage dropped to 3 percent, the lowest rate in the history of MBA’s weekly survey. That’s a drop of 2 basis points from the previous week’s 3.02 percent. The rate for jumbo loans dropped to 3.28 percent from 3.33 percent the week prior.

Refinancing applications made up 66.7 percent of the total mortgage applications last week. The activity drove MBA’s overall index, which tracks 75 percent of all residential loans, up 1.7 percent, seasonally adjusted.





    Related Articles

    arrow_forward_ios
    From left: Edison Properties CEO Robert Selsam, Ironstate Development's Michael Barry, Stellar Management founder Larry Gluck (LinkedIn; Gluck Family Foundation)

    These developers could benefit the most from Soho’s rezoning

    These developers could benefit the most from Soho’s rezoning
    176 North 6th Street and 16 South Portland Avenue in Brooklyn (StreetEasy; Google Maps)

    Brooklyn luxury market surges with nearly $73M in contracts

    Brooklyn luxury market surges with nearly $73M in contracts
    1045 Madison Avenue and 300 Central Park West (The Benson; Wikipedia Commons)

    Manhattan luxury market shows signs of progress with 25 deals

    Manhattan luxury market shows signs of progress with 25 deals
    TikTok's biggest stars include (from left) Bryce Hall, Griffin Johnson, Addison Rae, Charli D'Amelio and Dixie D’Amelio (Getty)

    Firm that manages TikTok party houses goes public

    Firm that manages TikTok party houses goes public
    RMBS then and now: Do securitized home loans still matter?

    RMBS then and now: Do securitized home loans still matter?

    RMBS then and now: Do securitized home loans still matter?
    From left: LX Collection's Justin Kitrosser, Terry Villani and Jared Seeger (Photos via LX Collection)

    New platform aims to be “Neiman Marcus” of luxury listings

    New platform aims to be “Neiman Marcus” of luxury listings
    A recent study that found 1 in 10 Black homeowners returned to renting between 1984 and 2017 (iStock)

    Black homeowners twice as likely to lose homes and return to renting: Report

    Black homeowners twice as likely to lose homes and return to renting: Report
    The Studio City house that stood in for Kris Jenner’s home on “Keeping Up With The Kardashians” is back on the market (Photos via Zillow; Getty)

    Fake Kardashian home in Studio City gets price bump

    Fake Kardashian home in Studio City gets price bump
    arrow_forward_ios

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

    Loading...