Falling Rates Spur Loan Demand in Latest Week
Mortgage applications were on the rise last week as the 30-year fixed-rate mortgage sank to its lowest level of the year, the Mortgage Bankers Association reports Wednesday.
Applications for home purchases and refinancings rose 0.2 percent in the week ending Aug. 29, according to the MBA’s seasonally adjusted index of mortgage application activity. Broken out, refinancing applications increased 1.4 percent, while applications for home purchases, viewed as a leading indicator of future home sales, dropped 1.5 percent during the week.
The 30-year fixed-rate mortgage averaged 4.25 percent in the week, the lowest level since June 2013, the MBA reports.
Source: “U.S. Mortgage Applications Rise in Latest Week: MBA,” Reuters (Sept. 3, 2014)