Data from the Mortgage Bankers Association show that applications for mortgages in America jumped 4.9 per cent week-on-week earlier this month, a surprise for many analysts.
The unexpected increase in volume was driven primarily by home buyers, as opposed to refinancing applications, notes the World Property Channel, which has been the case in recent months.
The refinance share of mortgage activity dipped 2 per cent week-on-week from 63 per cent to 61 per cent.
The figures follow news from the National Association of Realtors that home sales have risen by the biggest annual leap since September 2013, as domestic buyers continue to return to the market.
Lawrence Yun, NAR chief economist, attributes that increase to favourable interest rates: “Sales activity in October reached its highest annual pace of the year as buyers continue to be encouraged by interest rates at lows not seen since last summer, improving levels of inventory and stabilizing price growth.
“Furthermore, the job market has shown continued strength in the past six months. This bodes well for solid demand to close out the year and the likelihood of additional months of year-over-year sales increases.”
Source: The Movechannel