Mortgage application volume increased 1.1% on an adjusted basis during the week ended Dec. 11, as mortgage rates continued to hover near record lows, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Applications for refinances increased 1% from the previous week while applications for purchases increased 2%.
Year-over-year, applications for refinances were up 105% while applications for purchases were up 26%.
On an unadjusted basis, total volume increased 0.4% compared with the previous week.
“U.S. Treasury rates stayed low last week, in part due to uncertainty over the prospects of additional pandemic-related government stimulus, as well as concerns about the continued rise in COVID-19 cases across the country,” says Joel Kan, associate vice president of economic and industry forecasting for the MBA, in a statement. “Mortgage rates as a result fell to another survey low, with the 30-year fixed mortgage rate dropping five basis points to 2.85 percent.
“Homeowners once again acted on the decline in rates, with refinance activity rising for the second straight week and up 105 percent from a year ago,” Kan says. “The ongoing strength in the housing market has carried into December. Applications to buy a home increased for the fourth time in five weeks, as both conventional and government segments of the market saw gains. Government purchase applications rose for the sixth straight week to the highest level since June – perhaps a sign that more first-time buyers are entering the market.”
The refinance share of mortgage activity increased to 72.7% of total applications, up from 72.0% the previous week.
The adjustable-rate mortgage (ARM) share of activity increased to 1.8% of total applications.