“Mortgage rates were lower across all loan types last week, with the 30-year fixed rate declining to its lowest level since April at 6.79%,” said MBA deputy chief economist Joel Kan. “This decline prompted an increase in refinance applications, driven by a 10% increase in conventional applications and a 22% increase in VA refinance applications.”
The refinance segment saw the biggest gains. The Refinance Index jumped 7% week-over-week and is now 40% higher than the same week last year. The refinance share of total mortgage activity also rose to 40.1%, up from 38.4% the previous week.
Kan noted that borrowers with larger loan amounts responded more quickly to rate changes, pushing the average loan size for refinance applications up to $313,700, breaking a six-week stretch where the average stayed below $300,000.
Fannie Mae’s Refinance Application-Level Index (RALI) mirrored the MBA data, with refinance dollar volume up 15.8% on the week and up 42.6% year-over-year.
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