After declining steadily for a month last month, the demand for mortgages to buy a home has risen slightly over the past week.According to the seasonally adjusted index of the Mortgage Bankers Association, the total volume of mortgage applications rose 2.8% in the week due to refinance,Although mortgage applications for home purchases rose by 2% in the past week, they were still 18% less than one year ago. Although there is a limited supply and high prices, buyers are still facing a shortage of homes. It is clear that there is a higher demand for certain types of loans.Joel Kan, an MBA economist, stated that "the higher level of purchase activity this week was due to more government purchase requests, including a 3.3% rise in FHA loans." "With low home-price appreciation in many markets, the spike in FHA purchase requests could be a sign that first-time buyers are looking for purchase options despite high prices.A slight rise in mortgage rates didn't deter borrowers, particularly since rates are still historically low. The average 30-year fixed rate mortgage interest rate was 2.99%, compared to 2.97% for conforming loan balances of $5548,250. Points decreased to 0.30 from 0.33 for loans with 20% down payments.Refinance applications for home loans increased by 3%, but were 8% less than one year ago. Refinance activity has increased to 68% from 67.6% last week.Kan stated that homeowners continue to respond to lower rates and that refinance activity has risen to its highest level since February 2021.
