June 18, 2018

Loan Demand Picks Up After the Holidays

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Loan Demand Picks Up After the Holidays

For the first time in a month, mortgage applications were back on the rise last week, mostly helped by a spike in refinancing applications to the highest level in two months, the Mortgage Bankers Association reports. Mortgage applications rose 2.6 percent for the period ending Jan. 3. 

The week ending Dec. 27 mortgage applications fell to the lowest level since December 2000, MBA reports. 

Mortgage applications for home purchases -- viewed as a leading gauge of future home sales -- dropped 0.5 percent last week. Purchase applications had risen 2.4 percent the week before. 

Refinancing applications surged 4.6 percent last week, following an 8.9 percent decrease the previous week. 

The 30-year fixed-rate mortgage remained at a 4.72 percent average last week, holding at the highest level since Sept. 13, MBA reports. 

Source: “U.S. MBA Mortgage Applications Index Increased 2.6% Last Week,” Bloomberg (Jan. 8, 2014)