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Mortgage Demand Inches Higher

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Mortgage Demand Inches Higher

MBA: As interest rates move lower, home loan demand is ticking up. Mortgage applications to buy a home rose 4% for the week.

WASHINGTON – According to the Mortgage Bankers Association (MBA), mortgage application volume rose 3.2% last week after a month of declines.

Mortgage applications to purchase a home rose 4% for the week.

Meanwhile, refinancing applications rose 3% last week as well. The drop in rates from a high of just over 7% in October added to the still-tiny pool of potential borrowers who could benefit from a refinance.

MBA economist Joel Kan says, “The ongoing moderation in home-price growth, along with further declines in mortgage rates, may encourage more buyers to return to the market in the coming months.”

Demand for adjustable-rate mortgages dropped to 7.7% of total applications last week from just under 13% in October, when rates were much higher. 

Source: CNBC (12/14/22) Olick, Diana

 

 

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