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Mortgage Application Gains Resumed Post-Labor Day, Forbearances at Recent Lows
Wednesday, September 23, 2020
Mortgage application activity rebounded last week from the previous week's
Labor Day holiday lull. The Mortgage Bankers Association's (MBA's) Market
Composite Index, a measure of mortgage loan application volume, increased 6.8
percent on a seasonally adjusted basis and 18 percent unadjusted during the
week ended September 18. The prior week's results included an adjustment to account for the
holiday-shortened work week. Both refinancing
and purchasing application volumes were strong. The Refinance Index increased 9
percent from the previous week and was 86 percent higher than the same week one
year ago. The refinance share of applications constituted 64.3 percent of the total,
up from 62.8 percent a week earlier. The seasonally
adjusted Purchase Index added 3 percent and the unadjusted index was up 13
percent. Volume was 25 percent higher than the same week one year ago. The last
time the Purchase Index did not post a year-over-year gain was during the week
ended May 15.
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