According to the Mortgage Bankers Association’s (MBA) seasonally-adjusted index, mortgage applications surged 8.6% last week as compared to the previous week. This increase marked the first week over week increase since the end of February. The sharp increase in applications could be directly attributed to the recent decline in interest rates over the past week. This drop in rates marked the lowest level in the last two months, however they still remain roughly 25 basis points higher than a year ago.
Homeowners looking to refinance lead the surge in mortgage applications, with applications jumping 10% from the previous week. Applications to purchase a home increased 6%. MBA experts went on to state that they expect the purchase market to, “Remain strong, with the recovering job market and supporting demographics fueling housing demand in the months ahead.” Overall, the report suggests that many homeowners who missed out on last year’s refinance wave are looking to capitalize now, as well as new home buyers looking to purchase during the active Spring market!