Purchase Loan Activity Continues Rising as More States Reopen

Mortgage Weekly Update

Overall, mortgage applications have increased 2.7% from this time last week. The adjusted purchase index increased 7% from a week ago and was up 9% from this time last year.

On the jump, MBA’s Joel Kan, the Associate Vice President of Economic and Industry Forecasting, had this to say:

“The housing market is continuing its path to recovery as various states reopen, leading to more buyers resuming their home search. Purchase applications increased 9 percent last week — the sixth consecutive weekly increase and a jump of 54 percent since early April. Additionally, the purchase loan amount has increased steadily in recent weeks and is now at its highest level since mid-March,”

Refinance activity, on the other hand, decreased by 0.2 over the past week, accounting for 62.6% of total applications. However, Kan says that those numbers are still 176% higher than this time last year.

Additionally, he noted that, “Conventional refinance applications increased 2 percent, while government refinancing was down almost 7 percent.”

More in Mortgage and Housing News

  • Black Knight reports that 4.75 million homeowners are now in COVID-19-related forbearance plans, accounting for over $1 trillion in unpaid principal.
  • Fannie and Freddie launched “Here to Help“, a new online resource meant to help homeowners and renters navigate the financial hardships that they may be experiencing due to COVID-19.
  • The CFPB announced this week that it will issue a “No-Action Letter Template” to Brace Software, Inc., a digital solution for loss mitigation.

This Weeks’ Mortgage Rates

Mortgage rates experienced some slight fluctuations over the past week, with the rates on all 30-year, fixed-rate loans rising, including jumbo loans. For their part, FHA loans, 15-year, fixed-rate loans, and 5/1 ARMs all saw decreases.

Here’s how the rates looked like by loan product:

  • All 30-year, fixed-rate loans: 3.42%, 0.33 points
  • Jumbo 30-year, fixed-rate loans: 3.71%, 0.29 points
  • FHA 30-year, fixed-rate loans: 3.41%, 0.30 points
  • 15-year, fixed-rate loans: 2.87%, 0.30  points
  • 5/1 ARMs: 3.08%, 0.01 points

Truth be told, mortgage rates are always in flux. Check back here next week for the latest industry update.

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By Tara Mastroeni / May 29th, 2020 / Categories: / Tags:

Tara Mastroeni

Tara Mastroeni is a real estate and personal finance writer. Find her at TMRealEstateWriter.com or on Twitter at @TaraMastroeni.