MBA Chart of the Week: August Purchase Mortgage Application Shares by Loan Size

In August, 84 percent of purchase mortgage applications in the Mortgage Bankers Association’s Weekly Application Survey were for loans less than $417,000, the conforming loan limit in many geographies.  

Loans between $150,000 and $300,000 in size comprised the largest group at 39 percent of the application count, with even smaller loans accounting for 30 percent of volume.  

Compared to a year ago, applications for mortgages greater than $417,000 grew by 37 percent. While growth in jumbo markets has been the stuff of headlines, the number of applications for loans between $300,000 and $417,000 grew by 34 percent over the past year. For applications between $150,000 and $300,000, the rate was 23 percent.  

Growth in applications for the smallest loan sizes was slow to appear in 2015 but continued on a slight positive trend in August, growing 3 percent relative to a year ago. We expect further normalization of housing demand next year.  

To view the Chart of the Week, click https://www.mba.org/news-research-and-resources/forecasts-data-and-reports/forecasts-and-commentary/chart-of-the-week.  

(Lynn Fisher is vice president of research and economics with the Mortgage Bankers Association; she can be reached at lfisher@mba.org. Joel Kan associate vice president of economic forecasting with MBA; he can be reached at jkan@mortgagebankers.org.)