Loan Demand Skyrockets As Rates Remain Low

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were relatively flat last week after falling to the lowest level in more than a year the week before. Rates were virtually unchanged for 30-year fixed-rate loans, FHA loans, and jumbo loans, while rates for 15-year fixed-rate loans decreased and 5/1 ARMs moved higher. With rates still lower than they’ve been all year, mortgage demand skyrocketed, jumping nearly 17 percent week-over-week. Joel Kan, MBA’s vice president and deputy chief economist, says refinance activity saw the biggest gains. “Overall, applications increased almost 17 percent to the highest level since January 2023, driven by a 35 percent increase in refinance applications,” Kan said. “Additionally, purchase applications increased by 3 percent, with small gains seen across the various loan types, indicating that prospective home buyers are slowly reentering the market.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

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