Industry NewsMortgage

Loan demand rises for third straight week

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Demand for purchase loans inched up for the third straight week at the end of July, but was still down nearly 34 percent from a year ago, the Mortgage Bankers Association said in releasing the results of its Weekly Mortgage Applications Survey.Demand for purchase loans was up a seasonally adjusted 1.5 percent during the week ending July 30, while applications for refinancings rose 1.3 percent from the previous week.The growing demand for purchase loans was driven by a 3.4 percent increase in applications for FHA and other government-backed loans. Demand for conventional loans was essentially flat, the MBA said.When not adjusted for seasonal factors, the survey showed demand for purchase loans up 7.1 percent from a week ago, but down 33.7 percent from the same time a year ago.The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.6 percent from 4.69 percent, with points increasing to 0.93 from 0.88 (including the origination fee) for 80 percent loan-to-value ...