Mortgage Application Volume Rebounds
Lower mortgage rates lead to increase in overall mortgage applications.
After a week where mortgage applications were down over 5%, refinance and purchase applications bounced 9% from the previous week according to the weekly mortgage survey ending April 16, 2021 by the Mortgage Bankers Association (MBA).
The previous week saw an increase in mortgage rates being partially responsible for the decrease in applications. However, rates hit their lowest levels in weeks, leading to a burst of refinance applications.
Lower rates are rarely bad for purchase applications. This week’s survey is no exception as purchase activity increased over 5%.
What impacts mortgage application volume?
Lower mortgage interest rates affect home affordability as much as anything. Homebuyers can buy more expensive homes when rates are down, meaning sellers can raise prices.
Homeowners who refinance to a lower rate and lower payment now have more disposable income each month to save or put back into the economy. A rise in mortgage applications is generally seen as a positive indicator.
Fixed mortgage rates were down across the board, including conventional loans with balances less than $548,250 (conforming loans), jumbo loans (greater than $548,250), and government loans.
How to stay informed
If you're interested in keeping informed on the everchanging world of mortgage news, the Mortgage Bankers Association conducts their mortgage survey weekly as is available as a subscription for both MBA members and non-members.
You can stay current by checking the MBA's newsroom, full of the latest press releases.
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