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April 19, 2014

Loan Demand for Home Purchases on the Rise

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Loan Demand for Home Purchases on the Rise

Mortgage applications for home purchases ticked up last week as mortgage rates dropped to their lowest level since June, the Mortgage Bankers Association reported Wednesday. 

Purchase applications -- viewed as a leading gauge for future home sales -- rose 0.7 percent last week. 

Overall, mortgage applications -- which includes applications for home purchases and refinancings -- dropped slightly by 0.6 percent during the week ending Oct. 18, offset by a slowing demand in refinancings. Refinancing applications fell by 1.3 percent. 

The latest figures include part of the 16-day federal government shutdown, which had ended during the latter part of last week. The MBA said last week that the government shutdown had been hampering the mortgage market. 

Thirty-year fixed-rate mortgages fell 7 basis points to 4.39 percent last week, dropping to the lowest level since June, the MBA reports. 

Source: “U.S. mortgage applications dip, but purchase demand edges up -MBA,” Reuters (Oct. 23, 2013)

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