The latest home buying and refinancing data have shown an increase in overall mortgage activity, as indicated by the Mortgage Bankers Association’s Weekly Application Survey. The benchmark Market Composite Index increased by 2.7% on a seasonally adjusted basis from one week earlier. The Primary Mortgage Market Survey’s interest rate hovered 2 basis points above the historical low of 3.40% reached at the beginning of May.
Additionally, for the first time in over two months, purchasing activity was higher than what it was during the same week one year ago, posting growth on a seasonally adjusted, year-over-year basis. From the previous week, it increased by 9%. Meanwhile, the Refinance Index decreased 0.2 percent from the previous week and was 176 percent higher than the same week one year ago.
As the MBA cited, the uptick in applications was evidence that as states ease restrictions on public activity, prospective homebuyers will be encouraged to resume their housing searches.