After holding in lackluster territory for much of the spring season, weekly mortgage applications took a huge jump, signaling that the usual summer slowdown is perhaps, holding off.
Applications to purchase a home jumped 13 percent week-to-week,according to the Mortgage Bankers Association, while refinance applications surged just over 19 percent (both seasonally adjusted). This as the rate on the 30-year fixed mortgage stayed essentially flat at 3.88 percent, up from 3.87 percent.
“The increase was accentuated due to the comparison to the week including Memorial Day, but the level of refinance and total market activity is the highest since the spring of 2009,” said Michael Fratantoni, MBA's Vice President of Research and Economics. “Refinance volume increased as borrowers were able to lock in at mortgage rates below 4 percent, and purchase application volume was its highest level in over six months.”
Fratantoni also notes that volume in the government’s refinance program for underwater borrowers with Fannie Mae and Freddie Mac loans (HARP), which was expanded in January, has been steady in recent weeks at about 28 percent of refinance applications.