The latest statistics show that people in the housing market have decided to go big in order to return home.
The amount of loans people are looking for is close to a record.
In general, the demand for mortgage applications declined 3.9% from the previous week due to higher mortgage rates, according to the latest study by the Mortgage Bankers’ Association.
The seasonally adjusted buying index was down 1% from a week earlier.
“Despite declining for the second week in a row, average loan sizes remain close to an all-time high,” said Joel Kahn, MBA’s deputy vice president of economic and industry forecasting. “This is a constant sign that selling prices are still high due to fierce competition leading to accelerated growth in house prices.”
The refinancing index was down 5% from the previous week and was 8% lower than the same week a year ago.
“Mortgage rates were at their highest in about a month, with the 30-year fixed rate increasing from 3% to 3.06%,” Kahn said. strong July employment report, followed by a slowdown due to weaker consumer sentiment and concerns about rising COVID-19 cases. “
The survey covers over 75% of all US home mortgage applications and has been conducted weekly since 1990.