Home Buyers Behind Surge in Loan Demand

The re-fi boom is over. Now it’s time for house hunters to take advantage of record-low mortgage rates. Total mortgage application volume climbed 10 percent last week over the prior week on a seasonally adjusted basis, the Mortgage Bankers Association reported Wednesday.

Much of the increase in mortgage applications in recent weeks has been due to a rise in refinance applications, but in the latest week applications to purchase a home made up most of the climb. Applications for home purchases rose 9 percent from the previous week and are up 24 percent compared to a year ago, MBA reports. Purchase applications are now at the second highest level since May 2010.

Offering a boost to affordability, the average on the 30-year fixed-rate mortgage last week fell to 3.82 percent from 3.86 percent the prior week, MBA reports. That is the lowest average since January 2015.

Source: “Homebuyers Finally Fuel Mortgage Volume, Applications Up 10%,” CNBC (April 13, 2016)