Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Housing News

Home purchase loan demand on the rise for third consecutive week

Home purchase applications rose this week while refinance applications fell, following positive job market numbers. The ratio of purchase to refinance is shifting, while interest rates remain very low.

Demand on the way up

Demand for mortgages on purchases of homes rose for the third consecutive week last week while applications for refinancing decreased, according to The Mortgage Bankers Association’s (MBA’s) seasonally adjusted index of overall mortgage application activity. Overall, the index fell 2.4 percent, but looking just to demand for home purchases, a 4.4 percent increase from the previous week was measured.

“Applications for home purchase increased again last week, coinciding with another strong job market report. Purchase applications are now almost 12 percent above the level one month ago, even after adjusting for typical seasonal patterns,” said MBA’s Vice President of Research and Economics, Michael Fratantoni.

Fratantoni added, “However, this level of purchase activity, adjusted or unadjusted, was essentially unchanged when compared to the same time last year. Purchase activity remains subdued and within the narrow range we have seen since the expiration of the homebuyer tax credit in 2010.”

From the previous month, application volume rose 18.0 percent in February, while it remains 2.0 percent below February 2011. Refinance loans now account for 75.1 percent of applications, continuing the volume slide.

Advertisement. Scroll to continue reading.

“Refinance application volume fell last week,” Fratantoni said. “Although rates were unchanged on average, they trended up through the course of the week, and this likely discouraged many potential refinance applicants. HARP volume continued to grow as a share of total refinance volume, reaching roughly 30 percent of refinance activity in the last two weeks. Typical HARP loans had loan-to-value ratios above 90 percent, indicating that lenders are reaching out to underwater borrowers.”

Fixed 30-year mortgage rates remained at an average 4.06 percent.

Photo courtesy of Tim Pierce.

Advertisement. Scroll to continue reading.

Tara Steele is the News Director at The American Genius, covering entrepreneur, real estate, technology news and everything in between. If you'd like to reach Tara with a question, comment, press release or hot news tip, simply click the link below.


Leave a Reply

Your email address will not be published. Required fields are marked *


American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.




Business News

Will Bed Bath & Beyond be the latest victim of this economy, or do they just have perpetual problems with their business model?

Business News

We all know and love the company NASA for their space exploration efforts, but how much of an economic impact do they have? Turns...

Business Finance

Another large spike in the consumer price index isn't good news for the economy, and the context of the data is more complicated this...

Business Finance

With a second consecutive quarter of declining GDP data, we are officially in a recession - are we?

The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.