Loan Applications for Home Purchases on the Rise
Record-low mortgage rates likely were behind an increase last week in mortgage applications for home purchases, viewed as an important gauge of home sales.
Loan requests for home purchases increased 3.3 percent last week, the Mortgage Bankers Association reported in its weekly report.
However, the increase in loan applications for purchase was offset by a decrease in applications for refinancing. As such, MBA’s index for mortgage application activity — which includes refinancing and home purchase demand — dropped 2.1 percent for the week ending July 6.
Refinancing applications, which make up the biggest bulk of loan applications, dropped 3.4 percent last week.
Source: “Mortgage Applications Fell Last Week: MBA,” Reuters (July 11, 2012)