Home Loan Demand 14% Higher Than Last Year

According to the Mortgage Bankers Association’s Weekly Applications Survey, applications for loans to buy homes are now 14 percent higher than they were one year ago. The year-over-year improvement is a positive sign for the housing market and indicates that there are more prospective home buyers looking to buy this spring. Still, on a week-over-week basis, purchase applications were virtually unchanged from the week before and refinance demand fell 4 percent. In part, last week’s results were due to increasing mortgage rates. The MBA’s survey – which has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications – found that rates increased across all loan categories, including 30-year fixed-rate mortgages with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. Despite recent rate increases, however, purchase demand has remained relatively steady while, at the same time, refinance activity has experienced a general trend downward. More here.

Comments are closed.