After decreasing the previous two weeks, mortgage applications rebounded during the week ended July 3, rising 2.2% on an adjusted basis compared with the previous week, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Applications for refinances increased 0.4% compared with the previous week and were 111% higher compared with the same week one year ago.
Applications for purchases increased 5% compared with the previous week and were up 33% compared with a year ago.
On an unadjusted basis, total volume decreased 8% compared with the previous week.
“Mortgage rates declined to another record low as renewed fears of a coronavirus resurgence offset the impacts from a week of mostly positive economic data, such as June factory orders and payroll employment,” says Joel Kan, associate vice president of economic and industry forecasting for the MBA, in a statement. “The 30-year fixed rate slipped to 3.26 percent – down 53 basis points since late March. Borrowers acted in response to these lower rates, after accounting for the July 4th holiday.
“Purchase applications continued their recovery, increasing five percent to the highest level in almost a month and 33 percent from a year ago,” Kan says. “The average purchase loan size increased to $365,700 – also another high – as borrowers contend with limited supply and higher home prices.
“Refinance applications increased slightly, driven by a two percent rise in conventional refinances,” Kan adds. “Overall refinance activity was up 111 percent from last year.”
The refinance share of mortgage activity decreased to 60.1% of total applications, down from 61.2% the previous week.
The adjustable-rate mortgage (ARM) share of activity increased to 3.4% of total applications.