(Bloomberg) — Applications for home-purchase mortgages in the US rose to the highest level since April, signaling housing demand is picking up as borrowing costs hold below 7%.
Most Read from Bloomberg
The Mortgage Bankers Association’s index of mortgage applications to buy a home increased 7.5% to 174.3 in the week ended Jan. 19, according to data released Wednesday. The advance followed a 9.2% increase in the prior week that was the largest in a year.
The uptick comes as homebuyers get some relief from mortgage rates that neared 8% during the fall. While the contract rate on a 30-year fixed mortgage increased by 3 basis points to 6.78% last week, borrowing costs have been holding below 7% for more than a month.
The Federal Reserve has signaled it is done raising interest rates, and the housing industry is anticipating central bankers to start cutting rates this year.
The MBA’s overall index of mortgage applications, both for home purchases and refinancing, increased 3.7% to 218.2, the highest since May. The index for refinancing fell 7%.
The MBA survey uses responses from mortgage bankers, commercial banks and thrifts and has been conducted weekly since 1990. The data cover more than 75% of all retail residential mortgage applications in the US.
Most Read from Bloomberg Businessweek
©2024 Bloomberg L.P.
