Purchase Mortgage Volume Hits Highest Level in a Month

Though the overall mortgage application volume for the week ending on April 24 may have been down, the week’s numbers actually bring good news for builders: Purchasing business had its best week in almost a month, increasing by 12 percent from the week before. The drop in volume was led by refinance, which fell 7 percent but still remains 218 percent higher than last year, thanks to low interest rates. We’re not out of the woods yet, but the uptick in purchasing mortgage applications lends some hope for the future.

Even though mortgage application volume decreased from one week earlier, lenders had their best week for purchase business since the coronavirus shutdown began, according to the Mortgage Bankers Association.

The MBA's Weekly Mortgage Applications Survey for the week ending April 24 found a 3.3% drop in total volume, led by a 7% decrease in the refinance index from the previous week.

Still, refi application activity was 218% higher than the same week one year ago. The refinance share of mortgage activity decreased to 71.6% of total applications from 75.4% the previous week.

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