The Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending April 10, 2020 has found that total mortgage applications jumped 7.3 percent last week.
“The 30-year fixed mortgage rate decreased last week
to the lowest level in MBA’s survey at 3.45 percent. The decline in rates–despite Treasury yields rising–is a sign that the mortgage-backed securities (MBS) market is stabilizing and lenders are successfully working through their lending pipelines," said Joel Kan, MBA’s associate vice president of economic and industry forecasting.
The report revealed that the 15-year fixed mortgage rate remained unchanged from one week ago.
“Refinance activity has experienced a volatile four-week period, but did increase 10 percent last week. Refinancing will continue to be beneficial for the many borrowers able to lower their monthly payments during this time of economic distress,” said Kan.
Purchases continue to follow the downward trend, likely related to prospective homebuyers being more cautious during the COVID-19 pandemic. Refinancing is still driving much of the lending activity.