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September 22, 2014

Loan Demand Hits 21-Month High

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Loan Demand Hits 21-Month High

Mortgage applications for home purchases soared 12.9 percent last week, reaching the highest level since April 2011, the Mortgage Bankers Association reported Wednesday. The demand for mortgage applications for purchases is viewed as a leading indicator for future home sales.  

For the second straight week, mortgage applications showed signs of rebounding, following several weeks of declines before the end of 2012. 

MBA’s mortgage application index, which reflects applications for refinancing and purchases, rose 15.2 percent for the week ending Jan. 11. Applications for refinancings alone also rose for the week, increasing 15.3 percent. 

Meanwhile, 30-year, fixed-rate mortgages reached the highest average since November, rising to 3.61 percent for the week from 3.52 percent the previous week, the MBA reports. 

Source: “U.S. Mortgage Applications Rebound in Latest Week,” Reuters (Jan. 16, 2013)

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