Mortgages Bankers Report Shows Highest Volume in 11 Years
The Mortgage Bankers Association in its weekly report of mortgage application volume stated the number of applications nationally has continued to increase since mid-March when economic restrictions due to the coronavirus began.
Moreover, mortgage applications are at their highest level in 11 years, and for the second week of June 2020 were 21% higher than the same week last year.
Rising numbers in mortgage applications amid greater than usual economic concerns shows that consumer confidence has remained high. Buyers remain buyers, and new consumers are entering the market.
The Market Composite Index increased by 8% week-to-week. Refinance applications rose 10% week-to-week and were up 106% year-over-year.
“Purchase applications increased to the highest level in over 11 years and for the ninth consecutive week. The housing market continues to experience the release of unrealized pent-up demand from earlier this spring, as well as a gradual improvement in consumer confidence,” MBA’s Associate Vice President of Economic and Industry Forecasting Joel Kan said. “Mortgage rates dropped to another record low in MBA’s survey, leading to a 10% surge in refinance applications. Refinancing continues to support households’ finances, as homeowners who refinance are able to gain savings on their monthly mortgage payments in a still-uncertain period of the economic recovery.”
The survey has been conducted since 1990 and includes more than 75% of the nation’s retail residential mortgage applications.