Refinance applications vaulted +43% and dominated a 62.9% share of mortgage activity last week. Additionally, refinance activity jumped a whopping +109% higher than one year ago at this time.
Joel Kan, chief economist with the Mortgage Bankers Association (MBA), said, “Refinances increased for both conventional and government loans as lower rates provided a larger incentive for borrowers of all levels. It remains to be seen if this strong refinancing pace is sustainable, but even with the robust activity in the last two weeks, the (refinancing) level is still below what we had last fall.”
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Homebuyers did their part as well by pushing up the volume of purchase applications +16% last week and +8% from last year, according to the MBA. In fact, purchase applications hit its highest level of activity, +30.2%, since October 2009.
The problem, even with these soaring increases in mortgage activity for buyers wanting to submit purchasing applications? Buyers are facing near record low home supplies and those low supplies are accelerating home price gains.
If inventory supplies don’t ease, some, if not many, less affluent buyers looking to buy homes in the nation’s tightest markets will be standing at front doors around the country without keys to get inside of their chosen homes.
Thanks to CNBC’s Diana Olick for source data.
Also read:Become the Best at What You Do, Multi-Family Construction Down as Occupancy Surges to All-Time High(, There Just Aren’t Enough Homes on the Market
