US MBA mortgage applications w.e. 7 June +26.8% vs +1.5% prior Author: Justin Low | Category: News
Latest data from the Mortgage Bankers Association for the week ending 7 June 2019
- Prior +1.5%
- Purchase index 278.4 vs 253.1 prior
- Market index 529.8 vs 417.8 prior
- Refinancing index 1,956.5 vs 1,335.6 prior
- 30-year mortgage rate 4.12% vs 4.23% prior
Headline measures the change in number of applications for mortgages backed by the MBA during the week. That's a notable beat as mortgage applications jump to their highest level since September 2016. Looking at the details, this is largely led by a surge in refinancing activity amid a continued fall in the long-term mortgage rate.
Refinancing activity expanded to 1,956.5, the highest since November 2016 and accounted for 49.8% of mortgage applications in the past week. MBA notes that the surge is also helped by some home borrowing costs falling to their cheapest level in almost two years.
With markets starting to anticipate rate cuts by the Fed, this will no doubt keep rates on the lower side and help to give more confidence to the housing market after a recent slump since last year.