Mortgage Rates Hit a New Record Low Sparking Recovery in Home Buying Applications

  • The average contract interest rate for 30-year fixed-rate mortgages decreased to 3.43% from 3.45% last week.
  • That boosted mortgage demand from homebuyers by 12%, signaling a potential turn in buyer confidence.
  • Mortgage applications to buy a home rose last week, but refinance demand fell, causing total application volume to decline by 3.3% for the week, according to the Mortgage Bankers Association’s seasonally adjusted index.

Evidence is mounting that homebuyers may be coming back to the market, after demand plummeted in the past month due to the coronavirus.

Mortgage applications to buy a home rose last week, but refinance demand fell, causing total application volume to decline by 3.3% for the week, according to the Mortgage Bankers Association’s seasonally adjusted index.

Mortgage demand from homebuyers jumped 12%, signaling a potential turn in buyer confidence. Volume was still 20% lower than the same week one year ago. Real estate firms and listing websites have been reporting more buyer demand anecdotally over the past two weeks, and some homebuilders say they are also seeing buyers come back.

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