Mortgage applications fall after nearly a month of gains

Request for loans to buy homes fell by 5% last week

National /
Dec.December 09, 2020 08:00 AM
(Anthony Fomin via Unsplash)

(Anthony Fomin via Unsplash)

Homebuyer demand cooled last week after three weeks of increases.

An index tracking the volume of applications for home loans dropped 5 percent, seasonally adjusted, last week, according to the Mortgage Bankers Association.

The MBA metric, known as the purchase index, had reported increases for the previous three weeks. The average size of purchase loan applications also fell to $366,100 from a record high of $375,200 the prior week.

Joel Kan, MBA’s head of industry forecasting, said the decline was due to the increase in government loans, which tend to have lower balances, dragging down the average.

Kan maintained that despite last week’s decrease in applications, the purchase market is “poised to finish 2020 on a strong note.”

MBA’s index tracking refinance applications saw a 2 percent increase, unadjusted, last week and was up 89 percent year over year. Kan attributed that to mortgage rates once again hitting a record low in the 30-year history of MBA’s weekly survey of the mortgage market.

Rates for a 30-year, fixed-rate mortgage dropped two basis points to 2.90 percent from 2.92 percent. Jumbo rates increased to 3.20 percent from 3.19 percent.

Refinance applications accounted for 72 percent of the home loans MBA surveyed, up from 69.5 percent the week before.

The overall number of applications for home loans fell 1.2 percent, seasonally adjusted, according to MBA’s combined index. MBA’s survey covers 75 percent of the total residential mortgage market.






    Related Articles

    arrow_forward_ios
    LG Development plans 665 apartments in Fulton Market
    LG Development plans 665 apartments in Fulton Market
    LG Development plans 665 apartments in Fulton Market
    Magellan Development CEO buys condo unit at firm’s 101-story tower
    Magellan Development CEO buys condo unit at firm’s 101-story tower
    Magellan Development CEO buys condo unit at firm’s 101-story tower
    Winnetka mansion hits market with asking price just under $10M
    Winnetka mansion hits market with asking price just under $10M
    Winnetka mansion hits market with asking price just under $10M
    Bridge Investment Group Executive Chairman Robert Morse and Candlelight Village (Bridge, Candlelight Village)
    Bridge Investment purchases manufactured homes community for $30M
    Bridge Investment purchases manufactured homes community for $30M
    Sterling Bay CEO Andy Gloor and a rendering of the project (Sterling Bay)
    Sterling Bay’s first residential project planned in West Loop
    Sterling Bay’s first residential project planned in West Loop
    Chicago City Council OKs 50 single-family home development in Norwood Park
    50 single-family home development in Norwood Park gets city nod
    50 single-family home development in Norwood Park gets city nod
    Trump Tower Chicago with Vistex CEO Sanjay Shah (iStock, Vistex)
    Trump Tower Chicago 89th-floor penthouse lists for $30M
    Trump Tower Chicago 89th-floor penthouse lists for $30M
    An early rendering of 523-45 South Wabash Street (BKV Group)
    $350M mixed-use development in Loop approved
    $350M mixed-use development in Loop approved
    arrow_forward_ios

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

    Loading...