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Purchase Loan Activity Shows Impressive Gains

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were mostly flat last week, with little or no change across all loan categories – including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. Rates remain just above record lows and it continues to drive demand for home purchase loans. Joel Kan, MBA’s associate vice president of economic and industry forecasting, says demand is stronger than it’s been in over a decade. “Purchase activity continued to show impressive year-over-year gains, with both conventional and government segments of the market posting another week of growth,” Kan said. “Housing demand remains strong, and despite extremely tight inventory and rising prices, home sales are running at their strongest pace in over a decade.” Last week, the purchase index rose 9 percent from the week before and is now 28 percent higher than last year at the same time. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)