Published by FOX Business | February 8, 2023
The average loan size increased in the past week to $428,500 – the largest average since May 2022
Activity in the housing market showed a rebound in the past week as mortgages rates fell for a fifth straight week.
The 30-year fixed mortgage rate inched lower to 6.18%.
The Purchase Index increased 3% from one week earlier.
Interest was seen in one particular area, according to the Mortgage Bankers Association’s weekly survey.
“The average loan size on a purchase application increased to $428,500 – the largest average since May 2022. “This increase is a sign that the recent upward trend in purchase activity remains skewed toward larger loan sizes and less first-time homebuyer activity, as entry level housing remains under-supplied, and buyers struggle with affordability in many markets.”
—Joel Kan, MBA’s vice president and deputy chief economist
Overall, mortgage loan application volume increased 7.4% from a week earlier.
“Both purchase and refinance applications increased last week and have shown gains in three of the past four weeks because of lower rates,” added Kan. “Overall applications remained 58% lower than a year ago and rates are still significantly higher, however, this week’s results are a step in the right direction.”
The Refinance Index saw a big jump, rising 18% from the previous week.
Source: https://www.foxbusiness.com/economy/mortgage-activity-rebounds-skewed-toward-high-priced-homes
