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Demand For Purchase Loans Continues To Rise

According to the Mortgage Bankers Association’s Weekly Applications Survey, demand for home purchase loans increased 2 percent last week and is now 19 percent higher than it was last year at the same time. The improvement comes during a week when average mortgage rates were mostly flat, with only rates for loans backed by the Federal Housing Administration seeing a significant drop. Overall, though, mortgage rates remain near all-time lows. Joel Kan, MBA’s associate vice president of economic and industry forecasting, says buyer demand continues to be strong. “There continues to be strong home buyer demand this summer, as home shoppers have returned to the market in many states,” Kan sad. “Purchase activity increased again last week and was up 19 percent compared to last year – the ninth straight week of year-over-year increases.” Also in the report, low rates pushed refinance activity 5 percent higher than the week before. The refinance index is now 122 percent higher than last year. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)