Since the beginning of the year, interest in mortgage loans has soared, increasing by 20% from the previous week.
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According to the latest survey by the Mortgage Bankers Association, the surge in refinancing has also led to a 16.7% increase in overall demand for mortgage applications from the previous week.
The results of the previous week include holiday adjustments.
In the past week, the number of people interested in buying a house has increased by 8%.
Joel Kan, MBA̵
Most home prices have risen in the past 6 years
The share of refinancing of mortgage activities increased from 73.5% in the previous week to 74.8% of total applications.
Although the 30-year fixed mortgage interest rate climbed by two basis points to 2.88%, the demand for mortgage loans and financing is still growing.
However, the 15-year fixed-rate mortgage fell to 2.39%.
Cann added: “Continued housing demand continues to support the growth in home purchases, with transaction volumes increasing by nearly 10% over a year ago. The observed decrease in average loan balances is due to a 9.2% increase in FHA applications, which is a positive sign. More low-income and first-time home buyers are returning to the market.”
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Since 1990, the survey has been conducted once a week, covering more than 75% of US retail residential mortgage applications.