Wednesday
October 1, 2014

Loan Demand Surges in Latest Week

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Loan Demand Surges in Latest Week

Mortgage applications for both home purchases and refinancing increased last week, posting an uptick after several weeks of decreases in loan originations. 

Mortgage application activity rose 10.3 percent in the week ending June 6, led by a large jump in refinancing applications, the Mortgage Bankers Association reported from its seasonally adjusted index. Applications for refinancings rose 11 percent last week while applications for home purchases, a leading indicator of future home sales, rose 9.3 percent, the MBA reports. 

Still, the purchase index remains about 13 percent lower than the same week one year ago, the MBA reports. 

“The jump in applications shows folks are taking notice of rates near six-month lows,” says Quicken Loans vice president Bill Banfield. “The jump in purchase applications is especially good to see, as home owners may finally be getting comfortable putting their home on the market with the level of inventory they see around them.”

Last week, the 30-year fixed-rate mortgage averaged 4.34 percent, up 8 basis points from 4.26 percent the prior week, the MBA reports. 

Source: “U.S. mortgage applications rise in latest week-MBA,” Reuters (June 11, 2014) and “Mortgage applications unexpectedly jump 10% for week,” HousingWire (June 11, 2014)