The Mortgage Bankers Association’s (MBA) weekly mortgage applications survey showed that mortgage applications rose 5.7% in the week ending July 23.
– Without adjustments, the index rose 6% over the previous week.
– The refinancing index increased by 9% compared to the previous week and amounted to 10% y / y
– The purchasing index on a seasonally adjusted basis was down 2% from a week earlier.
– Unadjusted Buying Index is down 1% from the previous week – 18% below YoY.
– The share of refinancing mortgage activities increased to 67.2% of the total number of applications from 64.9% in the previous week.
“The yield on 10-year Treasuries fell last week as investors became worried about an increase in COVID-19 cases and the risks of a slowdown in the current economic recovery. Refinancing applications skyrocketed as the 30-year fixed mortgage rate fell to its lowest level since February 2021 and the 15-year rate fell to a new all-time low since 1990, ”said Joel Kahn, Deputy Vice President. President of the MBA in Economics and Industry. Forecasting. “Refinancing on conventional loans increased by more than 11%. With over 95% of applications for refinancing fixed rate mortgages, borrowers are looking to secure a lower rate for the life of their loan. ”
“The buying index has been down for the second week in a row to its lowest level since May 2020, and is now declining year-on-year for the past three months,” Kahn added. “Potential buyers are still deterred by the extremely high cost of housing. prices and increased competition. The FHFA reported yesterday that house prices in May were 18% higher than a year ago, continuing a seven-month trend of unprecedented house price increases. ”