Homebuyer demand hit its highest level in 11 years, as January continues to shape up to be a hot month for the housing market. Weekly mortgage applications jumped 30% for the week ending Jan. 10, a sign that home buyers are emerging, the Mortgage Bankers Association’s seasonally adjusted index shows.
“The mortgage market saw a strong start to 2020,” says Joel Kan, associate vice president of economic and industry forecasting for the MBA. “Applications increased across the board. Lower rates provided a larger incentive for borrowers to act.”
Indeed, the average 30-year fixed-rate mortgage decreased to its lowest level since September, averaging 3.87%, the MBA reports.
Applications for home purchases, a gauge of home buying activity, jumped 16% last week, reaching the highest level since 2009.
Refinancing applications saw the biggest jump last week among those applying for home loans, a 43% increase over last week. Refinance applications are 109% higher than a year ago. “Refinances increased for both conventional and government loans, as lower rates provided a larger incentive for borrowers to act,” Kan says.