Mortgage Application Rates Continue to Increase

With mortgage rates still at an all time low, applications are continuing to rise

Mortgage applications have been steadily increasing the last few weeks and we are finally seeing the increase in home sales from these applications.  A report from the National Association of Realtors shows that existing-home sales jumped to a record pace in June, a 21% increase from May.  And for the ninth consecutive week, mortgage applications have grown, signaling that the rise in sales will likely continue.

Mortgage applications for home purchases rose 2% over the previous week and are 19% higher than a year ago, the Mortgage Bankers Association reported on Wednesday.  The record low mortgage rates that we are seeing may be encouraging potential buyers to start searching for their new home as borrowers with stellar credit are receiving rates below 3%, lenders say.  

Home buying is only part of why we are seeing such demand in mortgage applications.  Homeowners are also looking to refinance their old mortgages with a new and lower rate.  Refinance applications increased 5% last week and are up 122% over the same week a year ago, the MBA reports.  

“The housing market is hot,” Lawrence Yun, NAR’s chief economist, said in a recent statement. “Home buyers have swiftly moved into the market to take advantage of the unimaginably low mortgage rates.”