Average US home loan size hits record with 3% interest rates
As home loan applications fell over the past week, the average loan size continued to break records.
The number hit $ 370,200 last week, a record high for the Mortgage Bankers Association’s weekly survey, which has been ongoing since 1990. The previous record of $ 368,600 was set a week earlier.
Also last week, an index tracking the weekly volume of mortgage applications to buy homes fell 1%, seasonally adjusted.
The Mortgage Bankers Association’s measure, known as the Buy Index, has consistently shown a year-over-year increase in the second week of September, its 17th consecutive week of annual growth .
The MBA refinancing activity index also fell from the previous week, falling 4 percent seasonally. However, the volume of refi requests was still up 30% year over year.
Joel Kan, industry forecasting manager for the trade association, attributed the drop in demand for home loans to borrowers who anticipated another drop in rates. But he said the underlying trends remain strong.
The average 30-year fixed-rate mortgage rate was unchanged last week at an all-time low of 3.07%, while jumbo rates rose one basis point to 3.41%.
The MBA index that tracks all home loans for the week fell 2.5%, adjusted, last week. The MBA survey covers 75% of the residential mortgage market.