Loan Demand Spikes; Buyers Jump on Rates

Mortgage rates fell further last week and home buyers and home refinancers quickly rushed to take advantage. Total mortgage applications — for home purchases and refinances — rose 8.8 percent on a seasonally adjusted basis last week, the Mortgage Bankers Association reports.

“Borrowers are clearly seeing the rate drop as perhaps a last opportunity to seize on historically low rates,” CNBC reports.

Applications for home purchases, viewed as a gauge of future home sales, rose 5 percent week over week and are now 22 percent above a year ago.

Source: “Mortgage Applications Up 8.8% as Buyers Look to Lower Rates,” CNBC (Jan. 27, 2016)