Mortgage Applications Hit A High Third Week In A Row

Lower mortgage rates have helped with the average loan size which hit a record for the third week in a row. The size reaching $327,500 is just one of the benefits homeowners and potential homeowners will see. Total mortgage loan applications rose 1.6 making the volume of applications 1.8% higher than a year ago.

“This, along with faster growth in the higher price tiers, is why the average loan application size has risen to a new high for three straight weeks,” Joel Kan, the MBA’s associate vice president of economic and industry forecasting said.

The 30-year fixed rate mortgages is the lowest we’ve seen since February 2018. The average interest rate with a loan balance of $484,350 or less went down from 4.64% to 4.55% with points decreasing from 0.47 to 0.42.

Refinance applications are also on the rise which rose 4%. The refinance volume is a good 3.5% higher than data shows this time last year.

“Entry-level housing supply remains weak and is likely hindering some would-be first-time buyers from finding a home,” Kan said. “This, along with faster growth in the higher price tiers, is why the average loan application size has risen to a new high for three straight weeks.”

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