Home Purchase Loans Up 15% From Last Year
According to the Mortgage Bankers Association's Weekly Applications Survey, the demand for loans to buy homes is now 15 percent higher than it was last year at the same time. The improvement follows a 5 percent week-over-week increase in the MBA's Purchase Index. Joel Kan, associate vice president of economic and industry forecasting, says the gains are positive but mostly concentrated on the high-end of the housing market. “Last week was a solid week for home buyers,” Kan said. “Purchase applications increased 2 percent and were 15 percent higher than a year ago. Low supply and high home prices remain a key characteristic of this fall's housing market, which is why the largest growth in activity continues to be in loans with higher loan balances.” Also in the report, average mortgage rates were up over the week before. In fact, rates increased across all loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. The MBA's weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.