9-Year High for Purchase Applications

Applications to purchase a home hit a nine year high last week, increasing one percent week-over-week, and up seven percent annually, according to the Mortgage Bankers Association’s seasonally adjusted index.

Total mortgage application volume was down 3.5 percent over the previous week, but 14 percent higher than it was a year ago. CNBC reports that refinance applications brought the total down with a 8 percent weekly drop but 26 percent growth YoY, as interest rates sit lower now than they did at that time. Joel Kan, MBA’s associate vice president of economic and industry forecasting, says, “With mortgage rates up for the second week in a row, it’s no surprise that refinancings slid 8 percent, and average loan sizes dropped back closer to normal levels," adding, “The spring buying season continues to be robust.”

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) increased to 4.44 percent from 4.40 percent, with points decreasing to 0.42 from 0.47 (including the origination fee) for loans with a 20 percent down payment. The rate was 22 basis points, or nearly a quarter of a percentage point lower than a year ago.

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