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Demand For Loans To Buy Homes Increases

According to the Mortgage Bankers Association’s Weekly Applications Survey, demand for loans to buy homes rose last week from the week before. In fact, the MBA’s Purchase Index increased 2 percent from one week earlier. It was the second improvement in three weeks. Joel Kan, MBA’s associate vice president of economic and industry forecasting, says buyer demand remains high. “Purchase applications increased for the second time in three weeks, rebounding after a rather weak April with mostly weekly declines,” Kan said. “Demand is robust throughout the country, but home buyers continue to be held back by the lack of homes for sale and rapidly increasing home prices.” The gains came during a week when average mortgage rates were relatively flat. There was little movement for 30-year fixed-rate loans with both conforming and jumbo balances. Loans backed by the Federal Housing Administration, on the other hand, saw an increase from the week before. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)