According to the Mortgage Bankers Association’s Weekly Application Survey, demand for loans to buy homes is rising. Last week, purchase application demand increased for the third straight week, reaching its highest level of activity in more than a month. Joel Kan, MBA’s vice president and deputy chief economist, says new homes are helping buyers find options. “Purchase applications increased for the third consecutive week to the highest level of activity since early May but remained more than 20 percent lower than year ago levels,” Kan said. “New home sales have been driving purchase activity in recent months as buyers look for options beyond the existing-home market.” The increase in purchase activity came during a week when mortgage rates saw mixed results. The average rate for 30-year fixed-rate loans with both conforming and jumbo balances increased from the week before, as did rates for 5/1 ARMs. Rates for FHA loans and 15-year fixed-rate loans, on the other hand, saw declines. (source)
