The spring mortgage market continued to show momentum as purchase mortgage applications across the country rose for the eighth straight 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 June 5 increased 5 percent from one week earlier. The previous week’s results had been adjusted for the Memorial Day holiday. The unadjusted Purchase Index increased 15 percent compared with the previous week and was 13 percent higher than the same week one year ago.

“Fueled again by low mortgage rates, pent-up demand from earlier this spring, and states reopening across the country, purchase mortgage applications and refinances both increased,” Joel Kan, MBA’s associate vice president of economic and industry forecasting, said in a statement. “The recovery in the purchase market continues to gain steam, with the seasonally adjusted index rising to its highest level since January. Purchase activity increased for the eighth straight week and was a notable 13 percent higher than a year ago.”

The Refinance Index increased 11 percent from the previous week but was 80 percent higher than the same week last year, showing lenders may continue to see the easing of their refi workloads. The refinance share of mortgage activity increased to 61.3 percent of total applications from 59.5 percent the previous week.

“Refinances moved higher for the first time in nearly two months, with both conventional and government applications rising and the overall index coming in 80 percent above year-ago levels,” Kan said.

Overall, the Market Composite Index, a measure of mortgage loan application volume, increased 9.3 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 20 percent compared with the previous week.

Purchase Mortgages Show Momentum

by Banker & Tradesman time to read: 1 min
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