Mortgage applications reach pandemic peak

Requests for loans to buy homes shot up 8% last week

National /
Jan.January 13, 2021 07:00 AM

A surge in home mortgage applications has set the bar high for 2021.

An index tracking applications to buy homes jumped 8 percent, seasonally adjusted, last week, up from the prior week when it declined in the final fortnight of 2020.

The metric, kept by the Mortgage Bankers Association, gained despite rising mortgage rates and was up 10 percent from the same period in 2020.

The average 30-year, fixed-rate mortgage increased to 2.88 percent, up from 2.86 percent the week before. Jumbo rates climbed to 3.17 percent, a 9-basis-point jump that would add about $18,000 in interest costs to a $1 million, 30-year loan.

Refinancing activity last week was up substantially, with the MBA index tracking refi applications increasing 20 percent, week-over-week. The index is up 93 percent year-over-year.

Joel Kan, MBA’s head of industry forecasting, said booming refinance activity caused mortgage applications to reach the highest levels since March 2020.

“The expectation of additional fiscal stimulus from the incoming administration, and the rollout of vaccines improving the outlook, drove Treasury yields and rates higher,” he said in a statement.






    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...