Mortgage Activity Jumps Despite Slight Jump in Rates
Mortgage applications jumped this week, increasing 4% across the board. Refinancing activity was up 5%, while purchase loan applications rose 2%. Both saw notable increases over this time last year (jumping 19% and 122%, respectively).
The increase comes despite a slight uptick in rates for the first time in a while. According to the Mortgage Bankers Association, the average rate on a 30-year, fixed-rate mortgage came in at 3.2% last week.
But that’s just the average. Joel Kan, vice president of economic and industry forecasting at MBA, said many borrowers are still getting sub-3% rates.
More in Mortgage and Housing News
- The total share of mortgage loans in forbearance dropped to 7.8% this week, equating to about 3.9 million homeowners. That’s the smallest share of loans in forbearance in more than two months.
- Freddie Mac released a report on accessory dwelling units this week, reporting that granny flats, in-law suites, and ADUs are on the rise. According to the report, ADUs have jumped about 8.6% every year for the last decade.
- A new analysis from Zillow shows home prices are seeing little impact from the COVID-19 pandemic. Sale prices are up 4.6% over the year, with the median home clocking in at $263,408. That’s a deceleration from April but a “generally small” one, according to the report.
- Home sales came in at 2% higher than pre-pandemic levels, and according to Redfin, “are likely to continue rising.” They’re also selling faster than normal. About half of the homes sold last week did so in less than two weeks.
- Realtor.com released a report detailing home buying preferences in the post-COVID world. According to the report, buyers are gravitating toward larger, higher-priced homes with garages, renovated kitchens, and big yards, and outdoor spaces.
This Week in Mortgage Rates
Rates increased slightly on 30-year, non-jumbo mortgages, but decreased on most other loan products.
Here’s a look at how rates shook out:
- All 30-year, fixed-rate loans: 3.20%, 0.35 points
- Jumbo 30-year, fixed-rate loans: 3.51%, 0.29 points
- FHA 30-year, fixed-rate loans: 3.13%, 0.29 points
- 15-year, fixed-rate loans: 2.71%, 0.32 points
- 5/1 ARMs: 2.89%, 0.02 points
Be sure to check back here next week for the most up-to-date mortgage rate info or get in touch with an Embrace loan officer for more personalized details.
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