Demand for mortgages inched up 0.3% for the week ending September 10, pushing purchase applications higher.
Mortgage application volume increased 0.3% on a seasonally adjusted basis but was down 10% on an unadjusted basis, according to the Mortgage Bankers Association’s latest survey. MBA’s purchase index jumped 8% from the previous week, while the refinance index dropped 3%.
“Purchase applications – after adjusting for the impact of Labor Day – increased over 7% last week to their highest level since April 2021. Compared to the same week last September, which was right in the middle of a significant upswing in home purchases, applications were down 11% – the smallest year-over-year decline in 14 weeks,” said Joel Kan, associate vice president of economic and industry forecasting at MBA. “Both conventional and government purchase applications increased, and the average loan size for a purchase application rose to $396,800. The very competitive purchase market continues to put upward pressure on sales prices.”