The Mortgage Bankers Association (MBA) reported on Wednesday that the mortgage
application volume in the U.S. surged 7.4 per cent in the week ended December 8,
following a 2.8 per cent jump the week before. This marked the sixth straight weekly
rise in total mortgage application volume.
According to the MBA’s data, last week’s soar in mortgage applications reflected
a 19.4 per cent climb in mortgage refinance applications and a 3.5 per cent increase
in mortgage applications to purchase a home.
The report also revealed that the average fixed 30-year mortgage rate fell from 7.17
per cent to 7.07 per cent, its lowest level since the week ended July 28 (6.93 per
cent).
Commenting on the latest survey results, Mike Fratantoni,
MBA’s SVP and Chief Economist, noted that mortgage rates declined last week, as
incoming data pointed to a slowing economy and supported a pivot by the Federal
Reserve to begin cutting rates next year. “Refinance volume picked up in
response to this drop in rates, with a particularly notable increase for FHA
and VA refinance applications,” he added.