Mortgage rates dip, triggering surge in loan requests

Applications for purchase loans and refinancing jump

National /
Apr.April 21, 2021 10:02 AM
Refinances made up 60 percent of all applications, up slightly from 59.2 percent the previous week. (iStock)

Refinances made up 60 percent of all applications, up slightly from 59.2 percent the previous week. (iStock)

When mortgage rates dropped last week to their lowest levels in two months, buyers pounced.

After three weeks of mortgage applications falling, a Mortgage Bankers Association index tracking them surged 8.6 percent.

The group’s refinancing index jumped even more, rising 10 percent from the previous week, though it was still 23 percent lower than it was a year ago.

“MBA expects the purchase market to remain strong, with the recovering job market and supportive demographics fueling housing demand in the months ahead” Joel Kan, MBA’s associate vice president of economic and industry forecasting, said in a statement.

Refinances made up 60 percent of all applications, up slightly from 59.2 percent the previous week. The average refinancing loan size was $279,500, a weekly increase from $269,800.

Kan noted that low mortgage rates prompted a “small resurgence in refinance activity after six weeks of declines.”

The average purchase loan was $406,100, a 1.8 percent increase from last week’s $399,000.

The average contract interest rate for 30-year fixed-rate mortgages fell to 3.20 percent from 3.27 percent. Jumbo loans ticked down to 3.34 percent from 3.35.

MBA’s survey covers 75 percent of the residential mortgage market and has been conducted weekly since 1990.






    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...