Mortgage Applications up 1% for the Week and a Remarkable 27% Higher Year Over Year
Mortgage applications to purchase a home increased just 1% for the week but were a remarkable 27% higher compared with a year ago. This marks three straight months of annual gains for purchase applications.
Demand for housing continues to swell, held back only by the severe shortage of homes for sale. Homebuilders are ramping up production, and mortgage applications for newly built homes are surging even higher.
“The housing market remains a bright spot in the current economic recovery, and these results, combined with July data on housing starts and homebuilder optimism, suggest that housing supply could be increasing to better meet the strong demand for buying a home,” Kan said.
"Positive economic data reported last week on retail sales, as well as a large U.S. Treasury auction, drove mortgage rates to their highest level in two weeks," Joel Kan, the MBA's associate vice president of economic and industry forecasting, said in a press release. "The rise in rates dampened refinance activity, but purchase applications continued their strong run and were 27% higher than a year ago — the third straight month of year-over-year increases."
The MBA's Weekly Mortgage Applications Survey for the week ending Aug. 14 found that the refinance index decreased 5% from the previous week and was 38% higher than the same week one year ago. The refinance share of mortgage activity decreased to 64.6% of total applications from 65.7% the previous week.
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