Demand For Home Purchase Loans Picks Up

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were up and down last week, with rates rising for FHA and 30-year fixed-rate loans with conforming loan balances but down for jumbo loans and 15-year fixed-rate mortgages. But despite the movement, mortgage rates didn’t deter potential home buyers. In fact, purchase application demand was up 3 percent from one week earlier and also up 3 percent from last year. Joel Kan, an MBA economist, told CNBC that, though for-sale inventory remains an issue for home buyers, demand continues to push forward. “Although the purchase market continues to be constrained by a lack of supply, applications for home purchase loans increased to the highest level in over a month, as demographic and economic conditions remain favorable for housing demand,” Kan said. In short, though mortgage rates have trended higher in recent weeks, Americans still see an opportunity to buy and demand remains high. 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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