The average loan size for home purchases is $333K and a ref $396K . Is
People are showing renewed interest in the housing market as the latest figures show a resurgence in mortgage applications last week that hasn’t been seen since spring.
The Market Composite Index, a measure of mortgage loan application volume, rose 4.9% on a seasonally adjusted basis from the week of September 17. Last week’s results included an adjustment for the Labor Day holiday.
“There was a resurgence in mortgage applications a week after Labor Day, with activity at its highest level in a month, and April,” said Joel, MBA Associate Vice President of Economic and Industry Forecasting. In 2021, the applications for purchase came at the highest level.” Kan said.
On a non-adjusted basis, the MBA report said, the index rose 16% over the previous week, while the refinancing index rose 7% from last week and was down 5% compared to the same week a year ago.
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In addition, the seasonally adjusted buying index rose 2% from a week ago. The unadjusted buying index rose 12% over the previous week and was down 13% from the same week a year ago.
Kan said, “Despite rising home prices and low inventory, there has been a sharp drop in demand for housing. Inventory conditions are improving, with more new homes under construction and more homeowners listing their homes for sale. Despite this week’s increase, purchase applications were still 13 percent lower than the same week a year ago.”
“Landlords took action while rates remained low at 3.03 percent,” Kahn said. “This week’s refinancing gain of 7 percent was heavily driven by an increase in FHA and VA applications.”
The refinancing share of mortgage activity increased from 64.9% last week to 66.2% of total applications, the MBA report said. The adjustable-rate mortgage (ARM) portion of the activity decreased to 2.9% of total applications.
The FHA share of total applications increased to 11.5% from 9.9% the previous week. The VA share of total applications also increased to 10.4% from 10.2% in the previous week. The USDA share of total applications rose to 0.5% from 0.4% a week ago.
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Additionally, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($548,250 or less) remained unchanged at 3.03%, as well as 80% loan-to-value ratio (LTV) loans. The effective rate has come down since last week.
The survey covers more than 75% of all US retail residential mortgage applications and has been conducted weekly since 1990.