Stronger Mortgage Demand Suggests Tailwind for Housing Market

The number of applications for home mortgages rose sharply last week, according to the Mortgage Bankers Association (MBA), dovetailing with recent federal data showing a surge in building permits and pointing to a likely boost in future home sales. Total mortgage application volume rose 4.9 percent last week, according to MBA’s composite index that tracks mortgage originations. The rise follows a minor 0.3 percent uptick the week prior and a 1.9 percent decline two weeks ago, with the trend suggesting tailwinds for the housing market. Mortgage rates remain at historic lows, with the benchmark 30-year fixed mortgage rate at 2.86 percent as of Sept. 16, according to Freddie Mac. The 30-year hit a record high of 18.63 percent in 1981. “Homeowners can capitalize on this prolonged period of ultra-low mortgage rates by refinancing and generating meaningful monthly savings to absorb the rising household costs seen in other areas,” Bankrate Chief Financial Analyst …

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