Skip to main content

MBA: Mortgage Apps Showing Steady Rise

Navi Persaud
May 27, 2020
Man filling out application. Credit: iStock.com/Rostislav_Sedlacek

The Mortgage Bankers Association's Weekly Mortgage Applications Survey showed a 2.7% increase in mortgage apps over last week, for the week ending on May 22, 2020. The refinance index showed a small 0.2% decrease for the same period. It was 176% higher than the same week in 2019. The MBA reports the seasonally adjusted purchase index jumped 9%, the sixth consecutive jump and a full 54% increase since April.
 
"The housing market is continuing its path to recovery as various states reopen, leading to more buyers resuming their home search. Purchase applications increased 9% last week—the sixth consecutive weekly increase and a jump of 54% since early April. Additionally, the purchase loan amount has increased steadily in recent weeks and is now at its highest level since mid-March," said Joel Kan, MBA's associate vice president of economic and industry forecasting. "Despite mortgage rates hovering near MBA's all-time survey low, refinance activity was essentially flat but still 176% higher than last year. Conventional refinance applications increased 2%, while government refinancing was down almost 7%." 
 
The refinance share of total mortgage application dipped from 64.3% to 62.6%, while the share of adjustable-rate mortgages increased to 3.4% of total mortgage applications. The FHA share decreased to 11.2% from 11.5%, the VA share dropped from 13.4% to 12.4% and the USDA share of total applications fell just 0.1% to 0.6%. 
 
In terms of refis, it was expected that more homeowners would take advantage of record-low rates, as last week, the Federal Housing Finance Agency deemed that GSE borrowers in forbearance can apply for refinancing and new purchase mortgages once their loans are current, waiving a previous mandatory wait of 12 months. 

 
Published
May 27, 2020
Federal Regulators Race To Address Cryptocurrency Risks

Cryptocurrency is quickly morphing into a volatile but widely embraced innovation, and federal regulators are racing to address the potential risks to consumers and the market. 

Industry News
Sep 24, 2021
MBA Initiative Seeks To Close Racial Homeownership Gap

Says its advocacy, partnerships & connections will help increase opportunities for minority borrowers

Industry News
Sep 24, 2021
Guaranteed Rate Opens New Branch In Southwestern Michigan

Guaranteed Rate expanded its presence in Southwester Michigan, after opening a new branch in St. Joseph

Industry News
Sep 22, 2021
Chinese Property Giant Evergrande Falters, Threatening U.S. Investors

On Monday, investors across three continents dumped their stocks, mainly out of fear that the world’s two largest governments — the United States and China — would undercut the beginnings of a global economic recovery. 

Industry News
Sep 22, 2021
Compass Mortgage Expands In Four Additional States

Compass Mortgage is now licensed in Virginia, Washington, North Carolina and South Carolina.

Industry News
Sep 22, 2021
Enact Holdings Completes IPO

Genworth Financial Inc. announced the completion of the initial public offering for its subsidiary Enact Holdings Inc.

Industry News
Sep 21, 2021