Mortgage

Mortgage applications for home purchases increase

New York led the nation with a 14% purchase-loan gain

Applications for mortgages to purchase homes gained for the fourth consecutive week while refinancings dropped, the Mortgage Bankers Association said in a Wednesday report.

A seasonally adjusted index measuring purchase applications rose 11% last week, compared with a 6% increase in the prior week, according to the report. Applications for refinancings fell 3% from the prior week, though the level was 201% higher than a year ago, MBA said.

“There continues to be a stark recovery in purchase applications, as most large states saw increases in activity last week,” said Joel Kan, an MBA associate vice president.

New York led the increases with a 14% jump, after a 9% gain in the prior week. Illinois, Florida, Georgia, California and North Carolina also had double-digit increases last week, said Kan.

“We expect this positive purchase trend to continue – at varying rates across the country – as states gradually loosen social distancing measures, and some of the pent-up demand for housing returns in what is typically the final weeks of the spring homebuying season,” Kan said.

The MBA’s Market Composite Index, a measure of all mortgage loan application volume, increased 0.3% on a seasonally adjusted basis from one week earlier.

The refi share of mortgage applications fell to 67% of all applications from 70% in the prior week. Some of that retreat is due to the loss of 33.5 million jobs since the COVID-19 pandemic hit the U.S. seven weeks ago.

The U.S. unemployment rate in April spiked to a record high of 14.7% in April, more than tripling from March, the Labor Department said on Friday.

The share of applications for mortgages backed by the Federal Housing Administration increased to 11.5% from 11.1% a week earlier, the report said.

The share for home loans backed by the Veterans Administration rose to 13.7% from 13.3%.

Leave a comment

Most Popular Articles

The housing market faced uncertainty in March, but now ‘it’s a circus’

The housing market faced a lot of uncertainty when COVID-19 caused the real estate industry to pause under shut-downs, but low interest rates and the desire for more space have turned this year into a boom time for real estate agents.

Oct 21, 2020 By

Latest Articles

Lone Wolf Technologies plans to accelerate growth with investment from Stone Point Capital

Stone Point Capital has purchased Vista Equity Partners’ stake in real estate software company Lone Wolf Technologies. Stone Point will become Lone Wolf’s lead institutional investor, powering the next phase of its growth and expanding its product offering, the company said.

Oct 23, 2020 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please