Demand for loans to buy homes continues to outpace last year’s level, according to new numbers from the Mortgage Bankers Association. The MBA’s weekly applications survey found purchase application demand was 23 percent higher than year before levels last week, despite only increasing 0.1 percent from the week before. Joel Kan, MBA’s vice president and deputy chief economist, says demand from buyers has persisted, despite economic and affordability challenges. “Purchase applications were little changed over the week but were at the strongest pace in four weeks and continued to run well ahead of last year’s pace,” Kan said. “Prospective home buyers remain more active compared to last year despite economic headwinds and uncertainty and affordability challenges.” Average mortgage rates were mixed last week, with rates up for 30-year fixed-rate loans, 5/1 ARMs, and 15-year fixed-rate loans, but down for jumbo loans and loans backed by the Federal Housing Administration. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
