MBA: As interest rates move lower, home loan demand is ticking up. Mortgage applications to buy a home rose 4% for the week, though still 38% lower year-over-year.
WASHINGTON – According to the Mortgage Bankers Association (MBA), mortgage application volume rose 3.2% last week after a month of declines.
Mortgage applications to purchase a home rose 4% for the week but were 38% lower than the same week one year ago.
Meanwhile, refinancing applications rose 3% last week as well, but they were still 85% lower than the same week last year. The drop in rates from a high of just over 7% in October added to the still-tiny pool of potential borrowers who could benefit from a refinance.
MBA economist Joel Kan says, “The ongoing moderation in home-price growth, along with further declines in mortgage rates, may encourage more buyers to return to the market in the coming months.”
Demand for adjustable-rate mortgages dropped to 7.7% of total applications last week from just under 13% in October, when rates were much higher.
Source: CNBC (12/14/22) Olick, Diana
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