Mortgage Demand Continues To Rise
- Mortgage applications to purchase a home jumped 9% last week from the previous week and were 28% higher annually, according to the Mortgage Bankers Association.
- Applications to refinance a home loan fell 5% for the week, but were an impressive 102% higher than a year ago.
2020 continues to be a unique year and this past week was no exception. Thanksgiving is not exactly a time to shop for homes, but this year it was! We can expect to see a robust Christmas shopping season too.
Fast-rising prices caused the average purchase loan amount to hit $375,000 last week, the largest since the inception of MBA’s survey in 1990. Low mortgage rates are not only giving buyers emotional incentive, they’re also giving them more purchasing power, and helping to inflate prices.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($510,400 or less) was unchanged at 2.92% last week, a record low, with points decreasing to 0.31 from 0.35 (including the origination fee) for loans with a 20% down payment. That rate was 105 basis points higher a year ago.
Applications to refinance a home loan fell 5% for the week, but were an impressive 102% higher than a year ago.
“The ongoing refinance wave has been beneficial to homeowners looking to lower their monthly payments during these challenging economic times brought forth by the pandemic,” said Kan, adding that the mortgage industry is poised for its strongest year in originations since 2003.
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