According to the Mortgage Bankers Association’s Weekly Applications Survey, demand for loans to buy homes rose 3 percent last week and is now 15 percent higher than it was last year at the same time. The improvement is yet another sign of the housing market’s continued strength. Joel Kan, MBA’s associate vice president of economic and industry forecasting, says home buyers are looking for newer, larger, and more expensive homes. “Purchase applications remain strong based on current housing demand, rising over the week and up a noteworthy 15 percent from last year,” Kan said. “Home buyers in early 2021 continue to seek newer, larger homes. The average loan size for purchase loans jumped to $384,000, the second highest level in the survey.” Also in the report, average mortgage rates rose from the week before. Increases were seen across all loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the FHA, and 15-year fixed-rate loans. Despite the increase, rates remain near all-time lows.
