The Mortgage Bankers Association has reported that after two weeks of decreases in mortgage applications, applications just increased 1.1% during the week of December 6-11, 105% higher than this same week one year ago. Mortgage rates have now set a 15th record low for 2020.
Homeowners are acting quickly on these historical rates, and while refinance activity continues to skyrocket, purchase applications do too. For the 6th week in a row, purchase applications rose, signaling that perhaps more first-time buyers are entering the market. Purchase applications increased 2% last week and are up 26% from this time a year ago. December is not typically a strong month for home sales, but demand continues to surge as Americans keep working from home.
Here is a more detailed breakdown of this week’s mortgage application data:
- The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($510,400 or less) decreased to 2.85% from 2.9% – a survey low
- The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $510,400) decreased to 3.12% from 3.2%, following two consecutive weeks where jumbo loan balances saw an increase
- The average contract interest rate for 30-year fixed-rate mortgages fell to 2.96% from 2.97%
- The average contract interest rate for 15-year fixed-rate mortgages decreased to a survey-low 2.49% from 2.51% – the second consecutive week where 15-year fixed-rate mortgage rates hit a survey-low
- The average contract interest rate for 5/1 ARMs decreased to 2.58% from 2.60%