Demand for mortgage applications increased slightly by 0.3% from a week ago, according to the Mortgage Banker's Association's survey, driving the purchase Index higher.
"Purchase applications – after adjusting for the impact of Labor Day – increased over 7 percent last week to their highest level since April 2021," MBA’s Associate Vice President of Economic and Industry Forecasting Joel Kan said. "Compared to the same week last September, which was right in the middle of a significant upswing in home purchases, applications were down 11 percent – the smallest year-over-year decline in 14 weeks."
The interest rate on a 30-year fixed-rate mortgage remained unchanged at 3.03% that kept refinancings on ice falling 3% to the lowest level since July.
Taking a deeper dive into the metrics, pricing still remains on the side of the seller.
"Both conventional and government purchase applications increased, and the average loan size for a purchase application rose to $396,800," he added. "The very competitive purchase market continues to put upward pressure on sales prices."
The survey covers over 75% of all U.S. retail residential mortgage applications and has been conducted weekly since 1990.