Home buyers were in a rush to lock in low mortgage rates last week, sending total mortgage application volume soaring 7.1 percent, the Mortgage Bankers Association reported Wednesday.
“Purchase application volume increased to its highest level since May 2010,” says Joel Kan, an MBA economist. “Refinance activity bumped up as well in response to moderating rates, but remained generally subdued.”
Home purchase applications skyrocketed 10 percent from the previous week on a seasonally adjusted basis. Applications are now 5.5 percent higher than a year ago, but overall volume remains 16 percent lower than the same week a year ago, when mortgage rates were lower.
The average 30-year fixed-rate mortgage dropped to its lowest level since November, averaging 4.14 percent last week, the MBA reports. Following the two weeks after the presidential election, mortgage rates jumped from 3.77 percent to 4.16 percent.
Meanwhile, applications for refinancings also got a little uptick from low rates, rising 3 percent week over week. Refinance volume remains 34 percent lower than a year ago, when interest rates were below 4 percent.