Purchase Loan Demand Grows For 3rd Straight Week
According to the Mortgage Bankers Association's Weekly Applications Survey, demand for loans to buy homes rose for the third consecutive week last week, climbing 6 percent from one week earlier. It's yet another sign that – though the coronavirus has slowed home sales – there is still significant pent-up home-buyer demand. Mike Fratantoni, MBA's senior vice president and chief economist, says activity is picking up as states loosen their stay-at-home orders. “Purchase volume increased for the third week in a row, led by strong growth in Arizona, Texas, and California,” Fratantoni said. “Although purchase activity remains almost 19 percent below year-ago levels, this annualized deficit has decreased as more states reopen amidst the apparent, pent-up demand for home buying.” Also in the report, the average mortgage was down week-over-week and are now at new survey lows. Rates fell for 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.