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Demand For Loans To Buy Homes Increases

March 27th, 2014 | Written by | Leave A Comment

LoansThe Mortgage Bankers Association’s Weekly Applications Survey measures both purchase and refinance demand based on the number of people applying for home loans. The Purchase Index, which tracks the number of requests for loans to buy homes, is a good indicator of future home sales. Last week, the Purchase Index rose 3 percent from the week before, due to a 4 percent spike in conventional purchase applications. Government loan applications were virtually unchanged. Despite the rising demand to buy homes, a drop in refinance activity brought the Market Composite Index – a measure of overall demand – down 3.5 percent from the previous week. The results are evidence of an anticipated shift this year from a market dominated by refinance demand toward one with increased purchase activity. Also, average mortgage rates were up last week across all loan categories, including 30 and 15 year fixed-rate mortgages, conforming and jumbo loans, and FHA-backed loans. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications

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