According to the latest seasonally adjusted index data from the Mortgage Bankers Association, total mortgage application volume increased 1.6 percent last week over the previous week.
With falling interest rates, homeowners' financial incentive to refinance is growing. Refinance volume primarily boosted total volume with a four percent weekly gain, and 3.5 percent in annual growth. Joel Kan, the MBA's associate vice president of economic and industry forecasting, tells CNBC, "Mortgage rates declined once again last week, as concerns about the slowing global economy and status of Brexit continued to drive investors' demand for U.S. Treasurys, ultimately pushing yields lower."
Mortgage applications to purchase a home, however, did not respond substantially. Purchase volume increased 0.3 percent for the week and was 1 percent higher than a year ago.
The average loan size, however, set a record for the third week in a row at $327, 500. The median price of a home sold in January was just $247,500, according to the National Association of Realtors.
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