Homebuyer Mortgage Demand Rises 4%

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Mortgage applications to buy a home rose 4% for the week, according to the Mortgage Bankers Association.

The Composite Market Index, a measure of the volume of mortgage applications, fell 0.3% on a seasonally adjusted basis from the previous week.

On an unadjusted basis, the index was down 2 percent from the previous week. The refinancing index was down 2 percent from the previous week and was 98 percent higher than the same week a year ago.

The seasonally adjusted purchasing index rose 4 percent from the previous week.

“Activity in the mortgage market was mixed last week, despite the 30-year fixed rate mortgage remaining below 3%. Housing demand remains supported by the ongoing labor market recovery and increased appetite among households seeking more space due to the pandemic, ”said Joel Kan, Associate Vice President of Economic and Industrial Forecasts of the MBA.

“The refinance index fell last week – due to sharp declines in FHA and VA claims – but remained 98% strong above last year. The average refinance loan balance of 291 $ 000 last week was the lowest since January. Many borrowers with higher loan balances may have acted earlier in the current wave of refinancing, “Kan said.

The refinancing share of mortgage activity fell to 69.8% of total applications, from 70.0% the previous week.

The average contractual interest rate for 30-year fixed rate mortgages with compliant loan balances ($ 510,400 or less) fell from 2.98% to 2.99%.

The average contractual interest rate for 15-year fixed rate mortgages increased to 2.59% from 2.55%.

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