Weekly data released by the Mortgage Bankers Association shows mortgage applications increased 5 percent week over week. That’s the largest weekly jump since May 2013.
Refinancing has seen a similar level of increased activity. The Refinance Index increased 15 percent from the previous week - its highest level since June 2013 - and was 183 percent higher than the same week one year ago.
"The 10-year Treasury yield fell around 20 basis points over the course of last week, driven mainly by growing concerns over a likely slowdown in Chinese economic growth from the spread of the corona virus. This drove mortgage rates lower, with the 30-year fixed rate decreasing for the fifth time in six weeks to 3.71 percent, its lowest level since October 2016," said Joel Kan, MBA's Associate Vice President of Economic and Industry Forecasting. "Refinance activity jumped as a result, with an increase in the number of applications and a spike in the average loan amount,as homeowners with jumbo loans reacted more resoundingly to lower rates."
Added Kan, "Prospective buyers weren't as responsive to the decline in mortgage rates - likely because of suppressed supply levels.Purchase applications took a step back, but still remained 11 percent higher than a year ago."
To get more info on weekly rates, read the MBA report.