Record-Low Rates Send Loan Demand Soaring
Mortgage applications for home purchases and refinancings jumped 18 percent last week, reaching the highest volume since 2009, according to the Mortgage Bankers Association’s report for the week ended June 8.
Loan requests for home purchases — which is a future gauge of home sales — ticked up 12.8 percent alone for the week. Refinancing applications climbed 19.2 percent.
“Refinance volume increased as borrowers were able to lock in at mortgage rates below 4 percent, and purchase application volume was its highest level in over six months,” says Michael Fratantoni, MBA’s vice president of research and economics.
Source: “Mortgage Applications Rose Last Week: MBA,” Reuters (June 13, 2012)