E Economics

US Mortgage Refinance Index Rose For The First Time In 7 Weeks

22 April, 2021
Mortgage Refinance Index

US mortgage refinance index rose for the first time in seven weeks as mortgage rates retraced. Mortgage Bankers Association (MBA) data showed that the refinance index increased by 10.4 percent in week ending April, 16 2021 (v -5.0% prior). Nevertheless, they fell 15.3 percent year to date and were down 23.5 percent compared with the same week one year ago.

The index rebounded as the 30-year mortgage rates dropped for the second straight week to 3.20 percent (down from 3.27 percent prior). Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting, highlighted “Mortgage rates dropped to their lowest levels in around two months, prompting a small resurgence in refinance activity after six weeks of declines. Borrowers acted on the decrease in rates for most loan types, with both conventional and government refinance applications showing gains“.

In the meantime, mortgage purchase applications fell for the first time in four weeks. Kan underlined “The spring housing market also saw a boost from lower rates, with purchase applications – driven by a jump in conventional applications – increasing over 5 percent. MBA expects the purchase market to remain strong, with the recovering job market and supportive demographics fueling housing demand in the months ahead.