Data from CoreLogic
revealed that purchase applications fell 30% in the second week of April, compared to the same week in 2019. Home-purchase loan applications were on the rise in the second week of January, but as the economy suffered months later at the hands of COVID-19, those applications fell off.
Purchase applications continue to drop, but mortgage demand continues to be supported by an increase in refinance activity, as seen in the latest Weekly Mortgage Applications Survey
from the Mortgage Bankers Association (MBA). Though refis have slowed, they still remain higher than they were a year ago.
"The volume reached a peak in the first week of March, as interest rates on 30-year refinance loans reached a record low, according to interest rates reported in the CoreLogic application data," said Archana Pradhan, principal, economist for CoreLogic.
As part of this week's Mortgage Leadership Outlook series, we chatted with Jerry Schiano
who believed that there will be another boost in refis as the country recovers from the pandemic. It's hard to tell if folks will be more inclined to purchase a home and apply for a loan, as stay-at-home orders are lifted, or if they will still be cautious about any interaction as the threat of the Coronavirus still looms.