Mortgage requests surge ahead of Thanksgiving

Strong appetite for homes as purchase applications jump 4% in a week

National /
Nov.November 25, 2020 08:45 AM
(iStock)

(iStock)

As the holiday season kicked off, buyers and homeowners got hungry for home financing.

An index tracking the number of mortgage applications to purchase homes increased 4 percent last week, seasonally adjusted, compared to the prior week, according to the Mortgage Bankers Association’s weekly survey.

It was the second consecutive weekly increase for the metric, known as the purchase index. The index had not grown for seven straight weeks until the second week of November.

Refinancing activity was also up: MBA’s index tracking applications to refinance increased 5 percent from the week before.

Joel Kan, MBA’s head of industry forecasting, attributed the jump in home loans to the drop in the average 30-year, fixed-rate mortgage rate to 2.92 percent from 2.99 percent. That rate was the lowest in the 30-year history of MBA’s weekly survey.

“The decline in rates ignited borrower interest, with applications for both home purchases and refinancing increasing on a weekly and annual basis,” Kan said in a statement.

The unadjusted purchase index was up 19 percent year-over-year, while the refinance index was up 79 percent year-over-year. Jumbo purchase rates increased, however, to 3.18 percent from 3.11 the week before. Many lenders are tightening lending criteria for jumbo loans, particularly in densely populated urban markets.

Overall, applications for all home loans increased by nearly 4 percent last week. Refinancing requests made up more than 71 percent of home loan applications, according to MBA’s report.

The surge in home loans comes as housing prices continue to rise amid record low levels of supply. Last month, there were just 1.42 million properties listed for sale.






    Related Articles

    arrow_forward_ios
    AIMCO founder Terry Considine and a rendering of the Grand Flamingo tower
    Miami Beach board rejects Aimco’s proposal for Grand Flamingo tower
    Miami Beach board rejects Aimco’s proposal for Grand Flamingo tower
    Aventura Mayor Enid Weisman (Facebook via Weisman, Getty)
    Aventura votes to require HOAs to submit critical reports within 48 hours
    Aventura votes to require HOAs to submit critical reports within 48 hours
    The current Miami Beach North Shore library with Mayor Dan Gelber (Google Maps, Gelber)
    Miami Beach seeks buyers for city-owned development sites
    Miami Beach seeks buyers for city-owned development sites
    The partially collapsed 12-story Champlain Towers South condo building (Getty)
    Inside the tug-of-war over the Surfside condo site’s future
    Inside the tug-of-war over the Surfside condo site’s future
     Adam Neumann (Getty, Bal Harbour Florida)
    Ex-WeWork CEO Adam Neumann inks $44M deal for Bal Harbour properties
    Ex-WeWork CEO Adam Neumann inks $44M deal for Bal Harbour properties
    Alex Sapir and Giovanni Fasciano with Arte by Antonio Citterio in Surfside (Photos via Arte by Antonio Citterio/PR Newswire)
    Miami penthouse sets cryptocurrency sale record: $22.5M
    Miami penthouse sets cryptocurrency sale record: $22.5M
    (iStock)
    South Florida resi construction starts soar in March
    South Florida resi construction starts soar in March
    Eden Multifamily heads Jay Massirman and Jay Jacobson with Cypress Equity Investments CEO Michael Sorochinsky (rendering courtesy of MSA Architects)
    Eden Multifamily, Cypress Equity score $24M construction loan for Tamarac apartments
    Eden Multifamily, Cypress Equity score $24M construction loan for Tamarac apartments
    arrow_forward_ios

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

    Loading...