- Summer is this year’s spring home buying season
- Purchase applications jump +18% over last year
- Just as purchase applications jumped, refinance applications fell -9% from prior week
This year’s summer home buying season is taking flight. Purchase applications jumped +18% from the week prior and a seasonally adjusted index that measures purchase applications also jumped +5% last week, according to the Mortgage Bankers Association (MBA). With this welcome uptick in purchase applications over the last seven consecutive weeks, refinance applications declined -9% from the week prior.
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“The pent-up demand from homebuyers returning to the market continues to support a recovery from the weekly declines observed earlier this spring,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting.
Kan added that the enormous unemployment rates and severely low housing supply may “restrain a more meaningful rebound.”
The Market Composite Index, used to measure mortgage loan application volume, decreased -3.9% on a seasonally adjusted basis from the week prior and refinances came in at just less than 60% of activity, the lowest level since February 2020.
The MBA reported a survey low for the average rate for a 30-year fixed mortgage at 3.37%.
Here is a more detailed breakdown of the week’s mortgage application data:
- Share of FHA mortgage applications remained unchanged at 11.2%
- VA share of applications fell from 12.4% to 12.0%
- USDA share of applications up from 0.6% to 0.7%
- Mortgage interest rates for a 30-year fixed fell to 3.37% from 3.42% the week prior
- Average contract interest rate for 30-year fixed with jumbo loan balances fell to 3.66% from 3.71%
- Average contract interest rate for 30-year fixed backed by the FHA increased from 3.41% to 3.46%
- Average contract interest rate for 15-year fixed decreased from 2.87% to 2.85%
- Average contract interest rate for 5/1 ARMs decreased to 3.05% from 3.08%
Thanks to Mortgage Bankers Association and HousingWire.
Also read: Interest Rates Jump and Mortgage Applications Tank, A Very Welcome May Surprise – Unemployment Fell to 13.3%, Breaking News: Fed LOWERS Interest rates! | Fears of Housing Market Crash Loom