According to the Mortgage Bankers Association’s Weekly Applications Survey, demand for loans to buy homes rose for the third consecutive week last week, climbing 6 percent from one week earlier. It’s yet another sign that – though the coronavirus has slowed home sales – there is still significant pent-up home-buyer demand. Mike Fratantoni, MBA’s senior vice president and chief economist, says activity is picking up as states loosen their stay-at-home orders. “Purchase volume increased for the third week in a row, led by strong growth in Arizona, Texas, and California,” Fratantoni said. “Although purchase activity remains almost 19 percent below year-ago levels, this annualized deficit has decreased as more states reopen amidst the apparent, pent-up demand for home buying.” Also in the report, average mortgage were down week-over-week and are now at new survey lows. Rates fell for 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
