Home purchase mortgage applications continued to surge last week as refinance applications hit their lowest level in seven months.
A home buying index tracking application rose 2 percent week after weekseasonally adjusted, according to the Mortgage Bankers Association. The increase is recorded despite historically low living conditions inventory and explode home Prices.
“Activity rose 5 percent year over year as the recovering labor market and demographics drive demand,” Joel Kan, head of industry forecasting, said in a statement.
MBA’s index-tracking refinance requests were down 4 percent last week – their lowest level since September. Kan attributed this to rising rates.
“Interest rates have risen 36 basis points since late January,” he said.
The average rate on a 30-year fixed rate mortgage was 3.28 percent, up 2 basis points from 3.26 percent. The average interest rate on jumbo loans was unchanged at 3.34 percent.
The average purchase credit size was $ 406,200 last week, compared to $ 409,900 the week before.
The MBA indices cover 75 percent of the residential mortgage market weekly. The report has been running since 1990.
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