The Mortgage
Bankers Association (MBA) reported on
Wednesday that the mortgage application volume in the U.S. surged by 11.0 per
cent in the week ended September 20, following a 14.2 per cent climb the week before. This was the fifth
straight weekly gain in total mortgage application volume.
According to
the MBA’s data, last week’s increase in mortgage applications was primarily due
to a 20.3 per cent jump in mortgage refinance applications. In addition,
mortgage applications to purchase a home rose 1.4 per cent.
The report also
revealed that the average fixed 30-year mortgage rate slipped from 6.15 per cent to 6.13
per cent, the lowest level since the week ended September 9, 2022 (6.01 per cent). This marked the eighth straight weekly decline in mortgage
interest rates.
Commenting on
the latest survey results, Joel Kan, MBA’s vice president and deputy chief
economist, noted that week-over-week gains for both conventional and government
refinance applications increased sharply in response to lower rates. “Average
loan sizes were higher both for purchase and refinance applications, which
pushed the overall average loan size to its highest in the survey’s history at
$413,100,” he added.