May 27, 2018

Mortgage Application Activity Rebounds, Up 5.3%

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Mortgage Application Activity Rebounds, Up 5.3%

Mortgage applications rose last week, with applications for home purchases driving most of the spike, the Mortgage Bankers Association reported Wednesday.

Applications for home purchases, viewed as a leading gauge of future home buying, rose 8.9 percent for the week ending May 2.

"A sizeable increase in purchase applications last week likely reflected the impact of somewhat lower mortgage rates as well as continued growth in the job market," says Mike Fratantoni, the MBA's chief economist. Still, purchase applications remain 16 percent lower than year ago levels.

Refinance applications last week rose 2.4 percent.

Overall, mortgage application activity, which includes both applications for refinancing and home purchases, rose 5.3 percent last week, a rebound after the previous week’s when mortgage applications had dropped to the lowest level since December 2000.

Meanwhile, the MBA reported that the average 30-year fixed-rate mortgage dropped to 4.43 percent last week, the lowest average since November.

Source: “As Interest Rates Fall, Mortgage Applications Rise,” Reuters (May 7, 2014) and “U.S. Mortgage Application Volume Up 5.3% Last Week, MBA Says,” The Wall Street Journal (May 7, 2014)