According to the Mortgage Bankers Association’s Weekly Applications Survey, demand for mortgage applications rose 5.4 percent last week from one week earlier. The improvement included a 13 percent increase in refinance activity and a 2 percent gain in demand for loans to buy homes. Joel Kan, MBA’s vice president and deputy chief economist, says challenging conditions have kept demand below last year’s level. “Purchase applications increased for conventional and FHA loans over the week but remained 26 percent lower than the same week a year ago, as home buyers continue to face higher rates and limited for-sale inventory, which have made purchase conditions more challenging,” Kan said. “Refinance applications also increased last week but are still almost 30 percent lower than the same week last year.” Still, rising demand is an encouraging sign, especially during a week when average rates rose for 30-year fixed-rate loans with both conforming and jumbo balances. Loans backed by the Federal Housing Administration also saw increases, while 15-year fixed-rate loans and 5/1 ARMs fell. (source)
