Housing market booms as mortgage demand hits 11-year high

by Peter Heck · Jun 17th, 2020 11:31 am

A ninth consecutive week of gains has lifted mortgage demands of potential homebuyers to an 11-year high, a full 21% increase over last year's numbers.

Fueled by a combination of a pandemic-inspired desire for security and record low mortgage rates, the number of people looking to purchase homes in the United States is surging.

"The housing market continues to experience the release of unrealized pent-up demand from earlier this spring, as well as a gradual improvement in consumer confidence," said MBA economist Joel Kan.

Additionally, there has been a renewed demand among homeowners to refinance their homes amid record low interest rates. Refinance applications now stand at a mark 106% higher than this time last year.

"Refinancing continues to support households' finances, as homeowners who refinance are able to gain savings on their monthly mortgage payments in a still-uncertain period of the economic recovery," Kan said.

The interest rate on a 30-year fixed mortgage is now an average of just 3.3%.


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