The number of home buyers requesting mortgage loan applications rose 9 percent last week, according to the Mortgage Bankers Association’s Weekly Applications Survey. The rebound, which follows the Labor Day holiday, reverses several weeks of slow demand. Lynn Fisher, MBA’s vice president of research and economics, told CNBC Americans are seeing their incomes rise and it’s helping home sales. “The purchase market remains supported by an improving U.S. labor market,” Fisher said. “Newly released data from the U.S. Census this week indicates that the median income increased by 5.2 percent last year, the highest rate of increase since 2007. Other recent but less comprehensive measures show wage growth continuing to strengthen in 2016.” Along with higher incomes, low mortgage rates are also drawing potential buyers to the market. Last week, average rates were down across most loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances. Mortgages backed by the Federal Housing Administration also saw a rate decline from the week before. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all U.S. retail residential mortgage applications. More here.
