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Falling Mortgage Rates Boost Purchase Apps 18% YoY

Wednesday, June 3, 2020

Refinancing volume continued to slide but purchase mortgage activity partially compensated during the holiday shortened week that ended May 29. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of mortgage loan application volume, decreased 3.9 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, probably due to the holiday, the Index was down 14 percent. Refinancing slipped another 9 percent although it remained 137 percent higher than the same week one year ago. Over the last seven weeks the Refinancing Index has lost an aggregate of 30 percentage points. The refinance share of mortgage activity decreased to 59.5 percent of total applications from 62.6 percent the previous week.

 

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