According to the Mortgage Bankers Association’s Weekly Applications Survey, mortgage demand increased 3.6 percent last week from the week before. Though the majority of the improvement was refinance activity, purchase demand also rose. The news is encouraging, as it points to gaining interest as spring approaches.
Joel Kan, MBA’s Associate Vice President of Industry Surveys and Forecasts, says the numbers show promise. After four consecutive declines, purchase applications increased almost 2 percent over the week and 2.5 percent compared to a year ago showing some promise as we edge closer to the spring home buying season, Kan said.
When it comes to specific loan categories, FHA and VA loan applications made up less of a share of total applications, compared to the previous week. Meanwhile, the share of USDA loans increased. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications.