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 07:00 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
    Berkshire Hathaway HomeServices CEO Christy Budnick (Berkshire)
    Berkshire Hathaway HomeServices names new CEO
    Berkshire Hathaway HomeServices names new CEO
    (iStock)
    Hot, hot, hot: Resi market sets new price records in March
    Hot, hot, hot: Resi market sets new price records in March
    (iStock)
    Homebuilder sentiment ticks up in April
    Homebuilder sentiment ticks up in April
    Andrew Florance, CEO of CoStar Group (CoStar, Homes.com)
    CoStar to buy Homes.com for $156M
    CoStar to buy Homes.com for $156M
    (iStock)
    Mortgage requests, refinancings continue to drop
    Mortgage requests, refinancings continue to drop
    Howard Hanna CEO Helen Hanna Casey and Compass CEO Robert Reffkin (Howard Hanna Casey, Getty)
    Howard Hanna accuses Compass of poaching agents, stealing trade secrets
    Howard Hanna accuses Compass of poaching agents, stealing trade secrets
    The effective rate was 1.1 percent, on average, in 2020, down from 1.14 percent in 2019. (iStock)
    Homeowners’ property taxes grew twice as fast last year
    Homeowners’ property taxes grew twice as fast last year
    HomeX founders Michael Lerner and Vincent Payen (HomeX)
    HomeX nabs $90M to connect homeowners and repair techs
    HomeX nabs $90M to connect homeowners and repair techs
    arrow_forward_ios

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

    Loading...