The Mortgage
Bankers Association (MBA) announced
on Wednesday that the mortgage application volume in the U.S. climbed by 14.2 per
cent in the week ended September 13, following a 1.4 per cent rise the week before. This marked the fourth
straight weekly increase in total mortgage application volume, the pace of
which was also the strongest since the week that ended August 9 (+16.8 per
cent).
According to
the MBA’s data, last week’s jump in mortgage applications reflected a 24.5 per cent surge in mortgage
refinance applications and a 5.4 per cent soar in mortgage applications to
purchase a home.
The report also
revealed that the average fixed 30-year mortgage rate decreased from 6.29 per cent to 6.15
per cent, the lowest level since the week ended September 9, 2022 (6.01 per cent). Overall, this represented the seventh straight weekly drop in mortgage interest rates.
Commenting on
the latest survey results, Joel Kan, MBA’s vice president and deputy chief
economist, noted that application activity was up significantly last week, as
market expectations of a rate cut from the Fed pulled mortgage rates lower. He
also highlighted that conventional purchase applications increased to a pace
ahead of last year, which drove overall purchase applications very close
to year-ago levels. “Homebuyers are seeing improving affordability conditions,
sparked by lower rates and slower home-price growth,” he added.