The Mortgage Bankers Association’s Weekly Survey shows demand for purchase loans grew by 2 percent week-over-week, while requests to refinance were up 5.5 percent. The bounce back follows weeks of steady decline throughout May and early June.
“Mortgage applications bounced back after three weeks of declines, increasing over 4 percent last week,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “The jump in refinances was the result of the 30-year fixed rate falling for the third straight week to 3.11 percent—the lowest since early May.”
Requests to refinance accounted for 61.7 percent of all mortgage applications, up from 60.4 percent the week prior. The adjustable-rate mortgage (ARM) share of activity decreased to 3.8 percent of total applications.
According to the MBA, data for May 2021 shows mortgage applications for new home purchases decreased 5.9 percent compared from a year ago. Compared to April 2021, applications decreased by 9 percent.