For the week ending May 22, mortgage applications increased 2.7 percent from a week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.
“The housing market is continuing its path to recovery as various states reopen, leading to more buyers resuming their home search,” says the MBA’s Joel Kan. “Purchase applications increased 9 percent last week – the sixth consecutive weekly increase and a jump of 54 percent since early April. Additionally, the purchase loan amount has increased steadily in recent weeks and is now at its highest level since mid-March.
“Despite mortgage rates hovering near MBA’s all-time survey low, refinance activity was essentially flat but still 176 percent higher than last year,” Kan adds. “Conventional refinance applications increased 2 percent, while government refinancing was down almost 7 percent.”
The refinance share of mortgage activity decreased to 62.6 percent of total applications, from 64.3 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 3.4 percent of total applications.
The FHA share of total applications decreased to 11.2 percent, from 11.5 percent the week prior. The VA share of total applications decreased to 12.4 percent, from 13.4 percent the week prior. The USDA share of total applications decreased to 0.6 percent, from 0.7 percent the week prior.
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Photo: Joel Kan