Refinance Index Hit Highest Level Since July 2016, Up 196% Year-Over-Year
The Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey surged for the week ending August 9, 2019 after climbing 5.3% last week.
The Market Composite Index gauging mortgage loan application volume soared a seasonally adjusted 21.7%. The Refinance Index increased 37 percent from the previous week to its highest level since July 2016. It was 196% higher year-over-year, or at this time one year ago.
“The 2019 refinance wave continued, as homeowners last week responded to extraordinarily low mortgage rates,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “Fears of an escalating trade war, combined with economic and geopolitical concerns, once again pulled U.S. Treasury rates lower.”
The refinance share of mortgage activity rose to 61.4% of total applications from 53.9%.
|August 2||August 9|
|Composite Index – W/W ∆||5.3%||21.7%|
|Purchase Index – W/W ∆||-2.0%||2.0%|
|Refinance Index – W/W ∆||12.0%||37.0%|
The Purchase Index rose 2% from one week earlier.
The average contract interest rate for 30-year fixed-rate mortgages with conforming balances (≤ $484,350) fell 3.93% to its lowest level since November 2016. The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (> $484,350) fell 3.88% to its lowest level since November 2016.