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Mortgage applications are up 3.9% according to the Mortgage Bankers Association's latest Weekly Mortgage Application Survey. With interest rates remaining low and scarce inventory, folks are still looking to capitalize on a new home well towards the end of the year. Refinances maintain the driving factor in mortgage activity.
According to the WMAS, the Refinance Index increased by 5% and was 79% higher than the same week in 2019. The seasonally adjusted Purchase Index increased by 4% and was 19% higher than the same week in 2019.
"30-year fixed mortgage rates dropped seven basis points to 2.92 percent, another record low in MBA's survey. Weekly mortgage rate volatility has emerged again, as markets respond to fiscal policy uncertainty and a resurgence in COVID-19 cases around the country. The decline in rates ignited borrower interest, with applications for both home purchases and refinances increasing on a weekly and annual basis," said Joel Kan, MBA's associate vice president of Industry and Economic Forecasting. "The ongoing refinance wave has continued into November. Both the refinance index and the share of refinance applications were at their highest levels since April, as another week of lower rates drew more conventional loan borrowers into the market."
"Amidst strong competition for a limited supply of homes for sale, as well as rapidly increasing home prices, purchase applications increased for both conventional and government borrowers. Furthermore, purchase activity has surpassed year-ago levels for over six months," added Kan.
The refinance share of total applications increased to 71.1% from 69.8% last week and the adjustable-rate mortgage share remained stagnant at 1.9%. The FHA share of total applications decreased to 10% from 10.5% last week, the VA share dipped to 11.8% from 12.1% and the USDA share decreased to 0.4% from 0.5% the previous week.