According to the Mortgage Bankers Association’s Weekly Applications Survey, demand for loans to buy homes is now 40 percent higher than it was at the same time last year. Typically, year-over-year gains are in the single digits. The improvement is also noteworthy, as it comes at a time of year when the housing market is usually starting to slow down. This year, however, is atypical. Joel Kan, MBA’s associate vice president of economic and industry forecasting, says, the year-over-year comparison is a bit skewed because of Labor Day. “Purchase applications were 40 percent higher than the same week last year, but the increase is skewed higher by being compared to Labor Day 2019,” Kan said. “Nevertheless, there continues to be resiliency in the purchase market. Applications were up almost 3 percent on a weekly basis and the average loan size continued to increase, hitting a survey high at $368,600.” Also in the report, average mortgage rates fell 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. The rate for 15-year mortgages hit a new record low. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
