Mortgage Applications Surge as Rates Fall in Latest Week
Refinanced loans nearly double; purchase loan applications are strong as well.
Fixed-rate mortgages decline.
Average loan size surges.
Mortgage applications increased 20.0% (49.4% y/y) in the week ended April 4, after falling in each of the prior three weeks, according to the Mortgage Bankers Association (MBA) Weekly Mortgage Applications Survey. Applications for loans to purchase a home rose 9.2% (24.5% y/y) last week, following a 1.5% rise in the prior week. Applications to refinance existing mortgages surged 35.3% (92.9% y/y) last week after declining 5.6% in the week ended March 28.
The effective interest rate on a 30-year fixed rate loan declined in the week ended April 4 to 6.79% from 6.88% in the week ended March 28. The effective rate on a 15-year fixed rate loan declined to 6.09% in the week ended April 4 from 6.19% in the prior week. The rate on a 30-year jumbo loan fell to 6.77% last week from 6.90% in the week ended March 28, while the rate on a 5-year ARM dropped to 6.04% in the latest week from 6.26% in the week ended March 28.
The share of applications to refinance an existing mortgage rose to 43.6% in the week ended April 4 from 38.6% in the prior week. That share had reached a low level of 38.7% in the week of February 14. The share of loans with an adjustable rate rose to 8.6% in the latest week from 6.5% in the prior week.
The average size of a mortgage loan rose 8.2% (10.6% y/y) to $429,200 in the week ended April 4, following a 0.3% slip in the prior week. The average size of a loan to purchase a home rose 1.0% (0.6% y/y) to $452,100 in the latest week from $447,500 in the week prior. The average size of a loan to refinance an outstanding mortgage increased 26.6% (50.6% y/y) to $399,600 in the week ended April 4 from $315,700 in the week ended March 28.