In the week ending July 3, mortgage purchasing levels on a seasonally adjusted basis marked the highest level since January 2009, according to NAHB. Other indexes such as the Market Composite Index and Purchasing and Refinancing increased as well. Refinancing activity saw growth, but the Mortgage Bankers Association’s 30-year fixed-rate mortgage rate fell to a new low of 3.26%. The average purchase loan size hit $365,700, another notable record high.
As was the case in the survey last week, the combination of low housing supply and higher home prices led to another record high this week in the average purchase loan size of $365,700. With the waning of pent-up demand that happened last week owing partly to the resurgence of COVID-19 and continuing decline in mortgage contract rates, a rebound in purchasing is part of the general trajectory of growth in the past couple of months. Interestingly, this week’s purchasing level, on a seasonally adjusted basis, marks the highest level since January 2009.
The purchasing share of mortgage activity increased from the previous week by almost 0.1%. The Purchasing Index’s mild decline in the previous week reflects a relatively lower level with respect to 1990, as indicated in the above figure, but bounced back.