Mortgage applications held steady last week after rising the week before, but were up 70 percent from one year ago, according to data from the Mortgage Bankers Association. Refinancings have powered the surge of late, although they dipped slightly last week.
For the week ending April 17, mortgage applications edged up 0.1 percent from the week before and were 1.4 percent higher than they were four weeks ago, according to unadjusted data from the group.
The minuscule weekly increase marks a slowdown from the 7 percent rise in applications for the week ending April 10.
A 2 percent increase in home-loan purchase applications offset a drop in refinance activity, said Joel Kan, MBA’s associate vice president of economic and industry forecasting, in a statement.
“Despite the 30-year fixed rate remaining at a record low in MBA’s survey, the refinance index dropped slightly last week but remained close to its 2013 highs,” he added. “Borrowers continue to take advantage of low rates to gain some monthly savings, which is a welcome reprieve during these tough economic times.”
Percent Change in Applications for Week Ending 4/17/2020
| 1 Week Ago | 4 Weeks Ago | 1 Year Ago | |
|---|---|---|---|
| Total | 0.1 | 1.4 | 70.0 |
| Purchase | 3.2 | -18.8 | -31.1 |
| Refi | -0.8 | 10.4 | 225.3 |
| FRM | 0.1 | 5.0 | 76.5 |
| ARM | 1.8 | -53.6 | -25.9 |
| Conventional Total | -0.2 | -2.7 | 64.5 |
| Conventional Purchase | 3.3 | -19.7 | -32.8 |
| Conventional Refi | -1.2 | 4.3 | 202.6 |
| Conventional FRM | -0.2 | 1.6 | 72.6 |
| Conventional ARM | 1.7 | -53.6 | -25.9 |
| Government Total | 1.0 | 16.1 | 88.5 |
| Government Purchase | 3.0 | -16.3 | -25.9 |
| Government Refi | 0.3 | 34.8 | 323.3 |
| Government FRM | 1.0 | 16.2 | 88.8 |
| Government ARM | 19.0 | -52.2 | -28.7 |
SOURCE: Mortgage Bankers Association
Two states hit hard by the coronavirus pandemic — California and Washington — saw purchase applications rise, according to unadjusted figures from MBA. In New York, applications dropped 8.3 percent for the week, after rising 0.8 percent the week prior. And for all three states, home-purchase applications dropped significantly year-over-year, with New York seeing the steepest annual decrease, 59 percent.
Write to Mary Diduch at md@therealdeal.com