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 Aly Yale / May 29th, 2020 / Categories: / Tags:

Aly Yale

Aly J. Yale is a freelance writer focusing on real estate, mortgage, and the housing market. Her work has been featured in Forbes, Bankrate, The Motley Fool, Business Insider, The Balance, and more. Prior to freelancing, she served as an editor and reporter for The Dallas Morning News. She graduated from Texas Christian University's Bob Schieffer College of Communication with a major in radio-TV-film and news-editorial journalism. Connect with her at AlyJYale.com or on Twitter at @AlyJwriter.