Mortgage and refinance applications are finally on a bit of a rebound following nearly a month of declines.
According to the Mortgage Bankers Association, mortgage applications increased 2.8 percent week-over-week, according to data from the MBA’s Weekly Mortgage Applications Survey for the week ending August 6, 2021. The Refinance Index increased 3 percent from the previous week, though it was 8 percent lower than the same week one year ago.
“Mortgage applications rebounded last week, including an increase in purchase applications for the first time in nearly a month. Rates slightly rose but remained below 3 percent, driven by an end-of-week increase in the 10-year Treasury yield following the positive July jobs report,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “Homeowners continue to respond to lower rates, with refinance activity climbing to the highest level since February 2021.”
The MBA also noted that the refinance share of loan counts was 68 percent, compared to a 63.4 percent share for refinances by dollar volume. The adjustable-rate mortgage (ARM) share of activity decreased to 3.2 percent of total applications.
“The higher level of purchase activity last week was driven by more government purchase applications, including a 3.3 percent increase in FHA loans,” Kan continued. “With low for-sale inventory keeping home-price appreciation in many markets at record highs, the jump in FHA purchase applications is potentially a sign that more first-time buyers are finding purchase options despite the high prices.”