Skip to main content

Mortgage Apps Rebounding As Country Reopens

Navi Persaud
Jun 10, 2020
Couple closing a deal on a home. Credit: iStock.com/FGTrade

Mortgage applications have risen 9.3% on a seasonally adjusted basis from one week ago, according to the latest Weekly Survey from the Mortgage Bankers Association. On an unadjusted basis, applications increased by 20%. 
 
The refinance index is up 11% from the previous week and was 80% higher than the same week in 2019. In addition, the seasonally adjusted purchase index increased by 5% from a week ago and 13% on an unadjusted basis. 
 
"Fueled again by low mortgage rates, pent-up demand from earlier this spring, and states reopening across the country, purchase mortgage applications and refinances both increased. The recovery in the purchase market continues to gain steam, with the seasonally adjusted index rising to its highest level since January. Purchase activity increased for the eighth straight week and was a notable 13% higher than a year ago," said Joel Kan, MBA's associate vice president of economic and industry forecasting. "Refinances moved higher for the first time in nearly two months, with both conventional and government applications rising and the overall index coming in 80% above year-ago levels."
 
According to the report, refinances made up 61.3% of total mortgage applications, increasing from 59.5% last week. The adjustable-rate mortgage share of total mortgage activity decreased by 3.1%. The Federal Housing Administration share of total applications increase from 11.2% to 11.5%, VA shares increased from 12.0% to 12.3% and the USDA share decreased from 0.7% to 0.6%.
 
The share of refinance applications continues to tell the story that the mortgage industry has been seeing since the nation was hit by the COVID-19 pandemic. As rates were driven down, folks sought to save as much as they could on their monthly mortgage payments.

 
Published
Jun 10, 2020
Guild Mortgage Acquires Cherry Creek Mortgage

Terms of purchase not disclosed; reverse mortgage volume added to Guild.

Mar 14, 2023
Vigilance, Dedication, And Commitment Forge Legends

Submit a nomination for Mortgage Banker Magazine’s Legends of Lending.

Mar 10, 2023
FTC Moves To Block Black Knight, ICE Merger

Says it 'would drive up costs, reduce innovation, and reduce lenders’ choices.'

Mar 09, 2023
Rocket Arms Brokers With Bully Shield Vs. UWM

Rocket covers penalties and court fees for brokers who want to get out of United Wholesale Mortgage’s ultimatum contract. 

Feb 06, 2023
Top Texas Originator Sees No Surrender To 2023

Big cities will determine the battle

Jan 26, 2023
There’s Good & Bad News On The Horizon

There will be a real estate slump, but the big cities are coming out much better

Jan 26, 2023