According to the Mortgage Bankers Association's Weekly Applications Survey, the average loan size for purchase applications fell last week to $423,500. That's the lowest it has been since January. It also could be an indication of who's most active in the housing market right now.
Joel Kan, MBA's vice president and deputy chief economist, says it shows buyers are more active in affordable areas. “This was likely driven by reduced purchase activity in some high-price markets and more activity in some of the lower price tiers as buyers search for more affordable options,” Kan said. But while buyers continue to search for more affordable options, overall demand for mortgage applications fell last week. It was the first decline in a month.
Part of the reason for the decrease was a bump in average mortgage rates, which were up for most loan categories – including 30-year fixed-rate loans with both conforming and jumbo balances, FHA loans, and 15-year fixed-rate loans. The MBA's weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications.
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