In a sign that the spring market could soon take off, purchase mortgage applications across the country increased for the sixth consecutive week, according to the Mortgage Bankers Association’s latest survey.

The MBA’s seasonally adjusted Purchase Index, part of its Weekly Mortgage Applications Survey, showed that purchase mortgage applications for the week ending May 22 increased 9 percent from one week earlier. The unadjusted index increased 7 percent compared with the previous week. Activity was also higher compared to the same week last year, showing a 9 percent increase.

“The home purchase market continued its path to recovery as various states reopen, leading to more buyers resuming their home search,” MBA Associate Vice President of Economic and Industry Forecasting Joel Kan said in a statement. “Purchase applications increased 9 percent last week – the sixth consecutive weekly increase and a jump of 54 percent since early April.”

Kan added that the purchase loan amount has also increased in recent weeks and reached its highest level since mid-March.

The refinance share of mortgage activity decreased to 62.6 percent of total applications from 64.3 percent the previous week.

“Despite mortgage rates hovering near MBA’s all-time survey low, refinance activity was essentially flat but still 176 percent higher than last year,” Kan said. “Conventional refinance applications increased 2 percent, while government refinancing was down almost 7 percent.”

Overall, the Market Composite Index, a measure of mortgage loan application volume, increased 2.7 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the index increased 3 percent compared with the previous week. The Refinance Index decreased 0.2 percent from the previous week and was 176 percent higher than the same week one year ago.

Purchase Mortgage Apps Rise Again

by Banker & Tradesman time to read: 1 min
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