【World Property Journal】Mortgage Applications Increase in Early August

Based on the Mortgage Bankers Association's latest Weekly Mortgage Applications Survey for the week ending August 7, 2020, U.S. mortgage applications increased 6.8 percent from one week earlier.

The Market Composite Index, a measure of mortgage loan application volume, increased 6.8 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 6 percent compared with the previous week.

The Refinance Index increased 9 percent from the previous week and was 47 percent higher than the same week one year ago. The seasonally adjusted Purchase Index increased 2 percent from one week earlier. The unadjusted Purchase Index increased 1 percent compared with the previous week and was 22 percent higher than the same week one year ago.

"Mortgage rates fell across the board last week, as investors grew less optimistic of the economic rebound given the resurgence of virus cases. Loan types such as the 30-year fixed, 15-year fixed, and jumbo all reached survey lows. Refi activity responded to these lower rates, with the refi share reaching almost 66 percent of all applications, its highest level since May. And the refi index jumped 9 percent, reaching its highest level since April, as both conventional and government applications for refinances increased," said Joel Kan, MBA's Associate Vice President of Economic and Industry Forecasting. "Home purchase activity continued its strong run with a 2 percent increase over the week and was up around 22 percent compared to the same week a year ago. While this was still positive news for the purchase market, the gradual slowdown in the improvement in the job market and tight housing inventory remain a concern for the coming months, even as low mortgage rates continue to provide support."
 

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