Higher Refi Demand Buoys Mortgage Apps as Rates Hit Lows

Mortgage application activity picked up last week with the Mortgage Bankers Association (MBA) reporting an increase of2.8%on a seasonally adjusted basis for the week ending February 13.

Refi applications were in the driver's seat, and although it was hardly a "jump", the Refinance Index did increase7%from the previous week and was132%higher than the same week one year ago. marking the strongest week for refinance activity since mid-January. This also keeps refi demand in the highest range seen since early 2022.

Purchase demand moved in the opposite direction, falling 3% versus the previous week. Notably, VA purchase applications bucked the broader trend, rising 4% for the week.

Joel Kan, MBA’s Vice President and Deputy Chief Economist, attributed the pickup in overall activity to the lowestmortgage ratesin four weeks.

The composition of activity shifted modestly. The refinance share of total applications increased to57.4%from 56.4% the prior week, while ARM share ticked up to8.2%. FHA share held steady at 18.4%, VA share rose to16.5%, and USDA share remained unchanged at 0.4%.

Source: MND NewsWire