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Mortgage applications jumped 6.8% on a seasonally adjusted basis for the week ending Aug. 7, according to the Mortgage Bankers Association's Weekly Mortgage Applications Survey.
On an unadjusted basis the mortgage application index increased 6%, the refinance index increased 9% from the previous week and was up 47% from the same week a year ago and the purchase index increased by 2% from a week earlier, according to the survey.
"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. Refi activity responded to these lower rates, with the refi share reaching almost 66 percent of all applications, its highest level since May. And the refi index jumped 9 percent, reaching its highest level since April, as both conventional and government applications for refinances increased," said Joel Kan, the Mortgage Bankers Association's assistant vice president of economic and industry forecasting. "Home purchase activity continued its strong run with a 2 percent increase over the week and was up around 22 percent compared to the same week a year ago. While this was still positive news for the purchase market, 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."
Additionally, the refinance share of mortgage activity increased to 65.7% of total applications from 63.9% one week earlier, the adjustable-rate mortgage share of activity dipped to 2.7% of total applications, the FHA share of total applications increased to 10.4% and the VA share increased to 11.4%.
Read the MBA's Weekly Mortgage Applications Survey.