October 23, 2016

Loan Demand Inches Up as Rates Stay Low

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Loan Demand Inches Up as Rates Stay Low

Mortgage applications for both refinancings and home purchases nudged up just 0.2 percent last week on a seasonally adjusted basis as mortgage rates remained low, the Mortgage Bankers Association reported Wednesday. Overall mortgage volume is about 20 percent higher than the same week a year ago.

The gap between refinancing and home-purchase applications is growing. Refinancing applications dropped 2 percent last week but remain 13 percent higher than a year ago. Applications for home purchases, on the other hand, increased 4 percent, reaching the highest level since January. They are now 30 percent higher than last year.

The average 30-year fixed-rate mortgage rose to 3.89 percent last week, up from 3.83 percent the week prior, MBA reports.

Source: “Mortgage Applications Eke Out 0.2% Gain,” CNBC (March 9, 2016)