Yesterday’s BLOG focused on the spike in the numbers of buyers and sellers entering the home-buying market. This was confirmed by the recent report issued by the Mortgage Bankers Association. This week’s mortgage application survey conducted by the Mortgage Bankers Association indicated that applications spiked over 30% from the prior week. 
According to the Mortgage Bankers Association, applications have increased across the board, from the 30-year fixed mortgage to refinances. Primarily lower rates have provided an incentive for borrowers to act.
The refinance index rose by 43% from the prior week. And the unadjusted purchase index increased by 51% from the prior week.
It appears that homebuyers wasted no time jumping into the market within the first week of 2020. According to the Mortgage Bankers Association, purchase activity was 8% higher than just one year ago. The Purchase Index increased across all levels to their its point since October 2009.
Fast Facts
- The refinance share of mortgage activity increased to 62.9% from last week’s 58.9%.
- The adjustable-rate mortgage share of activity increased to 4.5% of total applications.
- The Federal Housing Administration’s share of mortgage apps moved forward to 12.7% from last week’s 12.2%.
- The Department of Veterans Affairs share of applications fell to 12.1% from last week’s 14.1%.
- Mortgage interest rates for 30-year fixed-rate mortgages with conforming loan balances ($510,400 or less) decreased to the lowest level since September of last year, coming in at 3.87%.
- The average contract interest rate for 15-year fixed-rate mortgages fell to the lowest level since September 2019, coming in at 3.3%.
- The average contract interest rate for 5/1 ARMs increased to 3.35% from last week’s 3.19%.