There’s a scramble to refinance and buy new homes 

MBA says demand was driven by mortgage rates below 3% for “some creditworthy borrowers”

National /
Jul.July 22, 2020 12:00 PM
(iStock)
Mortgage Bankers Association’s index tracking volume of mortgage applications to buy homes rose 2 percent in most recent survey. (iStock)

As the summer heats up, so too is the demand for home loans. 

An index tracking the volume of mortgage applications to buy homes increased 2 percent, seasonally adjusted, from the second week of July when it fell by 6 percent.

The so-called purchase index is a metric based on the Mortgage Bankers Association weekly survey, which encompasses 75 percent of the U.S. residential mortgage market. Joel Kan, who leads industry forecasting for MBA, said the purchase index was up 19 percent year-over-year. 

He said the “strong homebuyer demand” the index shows came “despite mixed results from the various rates.” 

The 30-year fixed mortgage rate increased 1 basis point to 3.20 percent, while jumbo rates dropped 2 basis points to 3.51 percent, according to the MBA’s survey. 

Kan noted, however, that “some creditworthy borrowers are being offered rates even below 3 percent.” Last Thursday, Freddie Mac said the average rate for a 30-year fixed-rate mortgage hit 2.98 percent, a new low in its 50 years of tracking. 

MBA also tracks weekly refinance applications, which jumped by 5 percent, seasonally adjusted, last week, marking a 122 percent year-over-year increase. 

MBA’s overall index, which measures all home-loan applications, increased by 4.1 percent, and refinancing applications accounted for 65 percent of the total applications. 

Write to Erin Hudson at [email protected]


Related Articles

arrow_forward_ios
(iStock)
SoCal home prices keep rising while supply dwindles
SoCal home prices keep rising while supply dwindles
PG&E CEO Patricia K. Poppe, San Diego Gas & Electric CEO Caroline Winn and Southern California Edison CEO Kevin M. Payne. (Getty, PG&E, SDGE, Edison)
PG&E among utilities looking to cut subsidies on solar homes
PG&E among utilities looking to cut subsidies on solar homes
(iStock)
Did pandemic really trigger mass exodus from California?
Did pandemic really trigger mass exodus from California?
(iStock)
Southern California housing rush was unabated in January
Southern California housing rush was unabated in January
Orange County, CA (iStock)
SoCal home sales prices and volume surge
SoCal home sales prices and volume surge
Affirmed Housing CEO James Silverwood and the development site (Affirmed, Google Maps)
Affordable developer proposes complex in Chatsworth
Affordable developer proposes complex in Chatsworth
Homebuyers across Southern California continue to gobble up properties
SoCal homebuying surge bumps up against low inventory
SoCal homebuying surge bumps up against low inventory
Southern California home sales rose 27 percent in July compared to June
SoCal surge: Home sales rose 27% in July
SoCal surge: Home sales rose 27% in July
arrow_forward_ios

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

Loading...