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Riding on the back of continuing low interest rates, mortgage application volumes saw a spurt after a two-week fall, reports Mortgage Bankers Association.
The MBA’s Weekly Mortgage Applications Survey reveals that there has been a hike of 6.2% in mortgage application volumes over a week and a 37.1% rise, when compared on the year-to-year chart.
The refinance index has leapt up most with 9.1% over the week, which incidentally is its best show since April. On the year-to-year chart, it has posted a 46.7% leap. The purchase index didn’t do anything phenomenal over the week and managed to rise only 1% but on the year-to-year chart, it has grown 21.8%. This growth represents its 12th consecutive week of hike on the year-to-year chart.
Government programs also performed better this week. The FHA’s share picked up to 10.4% from 9.6%, reports MBA, while VA’s share rose to 11.4% from 11.2%.
Joel Kan, MBA’s associate vice president of economic and industry forecasting, stated in a press release that “Mortgage rates fell across the board last week, as investors grew less optimistic of the economic rebound given the resurgence of virus cases. Loan types such as the 30-year fixed, 15-year fixed, and jumbo all reached survey lows,” Kan further added that “the gradual slowdown in the improvement in the job market and tight housing inventory remain a concern for the coming months, even as low mortgage rates continue to provide support.”