According to the latest Mortgage Bankers Association Weekly Mortgage Applications Survey for the week through July 10, the Market Composite Index, which is a measure of mortgage loan application volume, experienced a 5.1% surge from the week prior. The Refinance Index increased 12% from the week earlier and registered 107.% higher than the same week a year ago.
“Mortgage rates continued their downward trend, with the 30-year fixed rate falling 7 basis points to 3.19 percent – another record low in MBA’s survey and 63 basis points lower than the recent high in late March. The drop in rates led to a jump in refinance activity to the highest level in a month, with refinance loan balances also climbing to a high last seen in March,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting, in a press release. “Purchase applications fell over the week but remained 15 percent higher than a year ago – the eighth consecutive week of year-over-year increases. Purchase activity remains relatively strong, despite the continued economic uncertainty and high unemployment caused by the ongoing pandemic.”
This news comes as some parts of the country, including California, begin to toggle back reopening phases. Despite the setback, the record-low mortgage rates have pent up new demand for newly built homes—a good sign for builders that the market continues to adapt to the “new normal.”