Mortgage Demand for Purchases Continues to Grow

November 28, 2012

Loan applications for home purchases rose again last week, marking the fourth straight week of increases, the Mortgage Bankers Association reported Wednesday. 

Mortgage applications for home purchases, viewed as a leading indicator of future home sales, rose 2.6 percent last week, the MBA reported. Meanwhile, applications for refinancings, which make up the biggest bulk of MBA’s mortgage application index, fell 1.5 percent for the week. 

The drop in refinancing applications prompted the overall mortgage application index--which reflects application demand for refinancings and purchases--to drop 0.9 percent for the week ending Nov. 23. 

Meanwhile, fixed-rate mortgage continue to break records. Thirty-year fixed-rate mortgages last week averaged a new record low of 3.53 percent during the week.

Source: “U.S. Mortgage Applications Drop in Latest Week,” Reuters (Nov. 28, 2012)

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