Record Low Rates Keep Mortgage Demand High

According to the Mortgage Bankers Association's Weekly Applications Survey, average mortgage rates set another record low last week. Rates were down for 30-year fixed-rate loans with both conforming and jumbo balances, though 15-year fixed-rate loans and those backed by the Federal Housing Administration remained unchanged from the week before. Joel Kan, MBA's associate vice president of economic and industry forecasting, says record low rates have kept mortgage demand running high. “Refinance and purchase activity continues to run well ahead of last year's pace, fueled by record-low rates and strong home buyer demand,” Kan said. “Housing supply is a challenge for many aspiring buyers, but activity should continue to stay strong for the rest of the year.” Demand for loans to buy homes is now up 24 percent over the same week one year ago. Refinance activity is 44 percent higher year-over-year. The MBA's weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

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