Mortgage Applications Jump 13%

Quarantines Lift, Mortgage Volume Explodes

Applications for purchase mortgages gained for the eighth consecutive week to a level that was 13% higher than a year ago as states continue to reopen across the country according to a report by the Mortgage Bankers Association.

A seasonally adjusted index measuring purchase applications jumped 5% last week. For the first time in two months refinancings gained as this past week witnessed an 11% increase and an 80% year-over-year gain, the MBA said.

The Market Composite Index, a measure of mortgage loan application volume, increased 9.3% on a seasonally adjusted basis from one week earlier.

“Fueled again by low mortgage rates, pent-up demand from earlier this spring, and states reopening, the recovery in the purchase market continues to gain steam, with the seasonally adjusted index rising to its highest level since January,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting.

Now that chart looks like a legit V shape recovery. This rebound in demand won’t show up in the May’s existing-home sales report coming out later this month. However, June’s report will give us an excellent base to work from for the rest of the year. We can have higher existing home sales in fall and winter, that would be the norm the previous expansion.

Sources:
Logan Mohtashami | HousingWire
Mortgage Bankers Association (MBA)
mortgagenewsdaily.com

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