According to the Mortgage Bankers Association’s Weekly Applications Survey, mortgage applications surged by 18.6 percent from the week earlier. Refinance activity surged even more than new mortgage applications.
In fact, refinance activity was up 39 percent from the weak earlier and purchase demand rose 3 percent. Demand for loans to buy homes is now 10 percent higher than at the same time a year ago. Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting, says that the recent loan activity is due to lowering interest rates. There was a tremendous surge in overall applications activity, as mortgage rates fell for the fourth week in a row with rates for some loan types reaching their lowest levels since January 2018, Kan said.
News of favorable mortgage rates comes at the right time for potential spring homebuyers and will help relieve some of the affordability concerns that caused home buyer traffic to slow last fall.