Mortgage rates dip, reviving applications and refis
There was an increase across the board including refinancing and purchasing.
Homebuyers' thirst for mortgages rebounded following a decline in the prior week.
Demand for mortgage applications jumped 5.5% from last week, according to the weekly survey from the Mortgage Banker's Association.
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There was an increase across the board including refinancing and purchasing.
The Refinance Index increased 7% from the previous week and the Purchase Index increased 3% from one week earlier.
The average loan balance for a refinance application was the highest in a month.
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There was a big reason for the increase – lower mortgage rates.
"The 30-year fixed rate decreased to 3.16% and has declined 14 basis points over the past two weeks," said Joel Kan, MBA’s associate vice president of economic and industry forecasting. "Although overall activity remains close to January 2020 lows, homeowners acted on the decrease in rates"
"The dip in rates might have helped to bring some buyers back into the market, but housing inventory is still extremely low and price growth remains elevated," added Kan.
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The survey covers over 75% of all U.S. retail residential mortgage applications and has been conducted weekly since 1990.