Refinance applications fell by 6% week-over-week, though it remained 84% higher than the same time last year. Refinances now make up just 43.1% of mortgage applications, down from 45.7% the previous week.
Meanwhile, the purchase market saw a slight boost, with the seasonally adjusted purchase applications up by 5%, marking a 10% increase compared to last year.
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As fixed-rate options continue to rise, the share of adjustable-rate mortgage (ARM) applications increased to 6.4% of total activity. In government-backed loans, FHA applications dropped to 16.4% of total applications, down from 16.9%, and VA loan applications decreased to 14.6% from 15.8% the previous week. USDA applications held steady at 0.4%.
“Purchase applications increased compared to a holiday-shortened week and were 10% higher than a year ago,” Kan noted. Although recent application activity has been muted, Kan expressed optimism that demand from younger homebuyers will continue to support purchase growth as inventory gradually loosens.
Source: mpamag.com