Demand for Mortgages Surged Last Week
The Mortgage Bankers Association reports that applications for home mortgages soared 11.1 percent for the week ending Sept. 7. Mortgage requests for home purchases, which is viewed as a leading indicator for home sales, increased 8.1 percent for the week.
Meanwhile, applications for refinancing — which make up the biggest bulk of MBA’s weekly index — increased 11.9 percent last week. The latest increase had followed several weeks of decreases in refinancing applications.
MBA cautions the numbers may overstate refinance applications. MBA reports that some lenders who take applications over the Internet had seen little decrease in applications compared to the drops that were reported by lenders who rely on retail offices.
Mortgage rates continue to hover around record lows, which has prompted more home buyers to explore taking advantage of the lower costs of borrowing, and home owners to refinance to try to unlock savings on their monthly mortgage payments.