Home Loan Demand Surges Following Holiday

According to the Mortgage Bankers Association’s Weekly Applications Survey, mortgage application demand surged following the Memorial Day holiday. In fact, the Market Composite Index, which is a measure of both purchase and refinance demand, rose 10.3 percent from the week before. Individually, the Refinance Index saw an 11 percent increase – largely due to two-months of downward trending mortgage rates – and the Purchase Index was up 9 percent. But despite recent trends, average mortgage rates increased across all loan categories last week, including 30 and 15 year fixed rate loans as well as FHA-backed mortgages. It was the first significant increase in rates in many weeks. Also in the release, the refinance share of total mortgage activity rose to 54 percent of applications, up from 53 percent the week before. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

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