Demand for mortgage from home buyers continues to recover, even with higher interest rates

For the second week of consecutive mortgage demand at home has grown, suggesting that potential buyers are now more attractively increasing the supply of homes for sale than they are discouraged by recent economic uncertainty and tariff concern.

Last week, the total mortgage application increased by 1.1% compared to the previous week, reports the seasonally adjusted index of the mortgage bankers.

The average percentage rate under the contract for a 30-year fixed rate mortgage with the loan residues, $ 806,500 and less, increased to 6.86% with 6.84%, and the points remain unchanged by 0.68, including the origin fee, for loans with 20% of the usual payment. This rate was 22 basic points above the same week ago.

Applications for a home mortgage increased by 2% a week and were 18% higher than they were. It was the second in a row, the weekly profit after the demand decreased dramatically over much of April. In the previous week they grew by 11%.

“The news of the week was the growth of applications for the purchase,” said Michael Frastantani, MBA Chief Economist. “Despite the economic uncertainty, the increase in home equipment means that there are additional properties for the purchase, unlike the last two years, and this delivery supports more transactions.”

He also noted the great profit in the government’s purchase applications, which increased by almost 5% and 40% over the year. Public credits tend to prefer lower income or for the first time home buyers as they offer low initial payment options.

According to Redfin, the total number of active lists at the national level is approximately 14% higher than at this time. The new lists increased by 5.5%.

Applications for the refinancing of the housing loan decreased by 0.4% a week, but 44% higher than the same week ago. The share of refinancing of mortgage activity decreased to 36.4% of the total applications with 37.1% last week.