Ultra-competitive market picks up steam
Demand for mortgages inched up 0.3% for the week ending September 10, pushing purchase applications higher.
Mortgage application volume increased 0.3% on a seasonally adjusted basis but was down 10% on an unadjusted basis, according to the Mortgage Bankers Association’s latest survey. MBA’s purchase index jumped 8% from the previous week, while the refinance index dropped 3%.
“Purchase applications – after adjusting for the impact of Labor Day – increased over 7% last week to their highest level since April 2021. Compared to the same week last September, which was right in the middle of a significant upswing in home purchases, applications were down 11% – the smallest year-over-year decline in 14 weeks,” said Joel Kan, associate vice president of economic and industry forecasting at MBA. “Both conventional and government purchase applications increased, and the average loan size for a purchase application rose to $396,800. The very competitive purchase market continues to put upward pressure on sales prices.”
The refinance share of mortgage activity of total applications was 64.9%, down from 66.8% the week prior. The adjustable-rate mortgage (ARM) share of activity grew to 3.3% of total applications.
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“While the 30-year fixed rate was unchanged at just over 3%, it was not enough to drive more refinance activity,” Kan said. “Refinance applications slipped to their slowest pace since early July, and the refinance share of applications fell to 65%, which was also the lowest since July.”
