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The Mortgage Bankers Association's Weekly Mortgage Application Survey reported a 6.8% increase for the week ending Sept. 18, 2020. On an unadjusted basis, the Market Composite Index increased by 18% compared to the previous week. The refinance index increased by 9% and was 86% higher than the same week one year ago and the seasonally adjusted purchase index increased 3%.
"Mortgage applications activity remained strong last week, even as the 30-year fixed-rate mortgage and 15-year fixed-rate mortgage increased to their highest levels since late August. Purchase applications were up over 25% from a year ago, and the demand for higher-balance loans pushed the average purchase loan size to another record high. The strong interest in homebuying observed this summer has carried over to the fall," said Joel Kan, MBA's associate vice president of Economic and Industry Forecasting. "Despite the uptick in rates, refinance applications increased around 9% and were almost 86% higher than last year. Both conventional and government refinance activity, and in particular FHA refinances, picked up last week."
The refinance share of mortgage activity increased to 64.3% from 62.8% the previous week, the adjustable-rate mortgage share decreased to 2.2%, the FHA share increased to 10.1% from 9.7%, the VA share decreased to 12% from 12.3% and the USDA share increased to 0.6% from 0.5%.