Slight Drop in Rates Pushes Loan Demand Up

Every day Real Estate News | Wednesday, June 24, 2015

A drop in home loan rates a week ago served to push contract applications higher, the Mortgage Bankers Association reports. Complete applications – for both renegotiating and home buys – expanded 1.6 percent week-to-week on an occasionally balanced premise for the week finishing June 19. General volume is about 11 percent higher than one year prior.

Broken out, renegotiate applications expanded 2 percent a week ago and are up around 4 percent from a year prior, MBA reports. These, applications for home mortgage are seen as an indicator of future home purchasing movement, that climbed 1 percent from the earlier week, and are 18 percent higher than they were a year back.

"The 18 percent [annual] pick up in application volume is yet another indication of becoming stronger in the housing market taking after the current week's more grounded numbers on new and existing home deals," says Michael Fratantoni, MBA's boss market analyst.

Home loan rates offered a slight help to borrowers a week ago. MBA reports the normal 30-year settled rate home loan a week ago dropped to 4.19 percent; it was averaging 4.22 percent the week earlier. However, the drop was likely brief and there were indications of moneylenders moving rates higher Tuesday, CNBC repo