Low Rates Spark Rise in Loan Demand

Mortgage applications for purchase were up slightly as mortgage rates last week hovered near record lows. Overall, applications increased 0.1 percent last week compared to a week earlier, with purchase applications seeing the largest increase, according to data from the Mortgage Bankers Association for the week ending April 27. Mortgages for home purchases increased 2.9 percent last week and was 3 percent higher last week compared to the same week one year ago, according to MBA. Meanwhile, applications for refinancings, which make up 72.6 percent of total applications last week, decreased 0.7 percent compared to the previous week. Investor applications for mortgages have decreased slightly over the last few weeks, according to MBA. The share of applications for home purchases from investors during the month of March was at 5.7 percent, which is down from 6.1 percent in February. Meanwhile, purchase applications for second homes has held steady at 5.8 percent. Source: Mortgage Bankers Association