Skip to main content

Mortgage Applications Slip 2%

Sep 02, 2020
Agent handing over paperwork to be signed.
Director of Events

The Mortgage Bankers Association's Weekly Mortgage Applications Survey reported a 2% decrease in mortgage applications on a seasonally adjusted basis for the week ending Aug. 28, 2020. On an unadjusted basis, the index decreased by 3% compared to the previous week.

The refinance index decreased 3% from the previous week but remained 40% higher than the same week in 2019. The seasonally adjusted purchase index decreased by 0.2% and the unadjusted purchase index decreased by 3% compared with the previous week, 28% higher than the same week one year ago.

"Both conventional and government refinancing activity decreased last week, despite 30-year fixed and 15-year fixed mortgage rates declining to near historical lows. Mortgage rates have remained below 3.5% for five months now, and it's possible that refinance demand may be slowing and will not significantly increase again without another notable drop in rates," said Joel Kan, MBA's associate vice president of economic and industry forecasting. "Purchase applications were essentially unchanged over the week and were 28% higher than a year ago - the 15th straight week of year-over-year increases. Lenders are reporting that the strong demand for home buying is coming from delayed activity from the spring, as well as households seeking more space in less densely populated areas."

The refinance share of total mortgage activity slightly decreased to 62.5% from 62.6% in the previous week, the adjustable-rate mortgage share remained stagnant at 2.6%, the FHA share decreased to 10.2% from 10.5% the previous week, the VA share decreased to 11.4% from 11.8% and the USDA share remained stagnant at 0.6%, according to the report.

View the MBA's full Weekly Mortgage Applications Survey

 

About the author
Director of Events
Navi Persaud is Director of Events at NMP.
Published
Sep 02, 2020
Fewer Canadians Hunt For U.S. Property

Largest component of international buyers in U.S. takes more than 25% hit

Jul 08, 2025
Fannie, Freddie Now Allow Lenders To Use VantageScore 4.0

Lenders will keep tri-merge credit scoring model; what this shift means

Fairway Independent Mortgage Corporation Announces Rebranding

Now Fairway Home Mortgage, company also donates $1M to support relief efforts in deadly Texas flooding

Jul 07, 2025
FHFA Chief Officially Calls For Investigation Of Federal Reserve Chairman Powell

Alleges Powell lied in testimony to Congress regarding Fed building renovations, says Fed Chair should be fired

BBB Will Impact Homeowners, Buyers

U.S. House and Senate must agree on certain tax, mortgage insurance premium deductions

FHFA, Fannie, Freddie Rebrand CSS To U.S. Financial Technology To Boost Recognition, Sell More MBS Services

Meanwhile, FHFA also considering renaming LLPAs for mortgages the GSEs acquire