Home loans in demand as rates chart new lows

Demand for purchase loans up 5 percent from year ago

Demand for mortgages continues to pick up as rates head deeper into record territory, according to surveys by Freddie Mac and the Mortgage Bankers Association.

Rates on 30-year fixed-rate mortgages averaged 3.40 percent with an average 0.6 point for the week ending Sept. 27, down from 3.49 percent last week and 4.01 percent a year ago, Freddie Mac said in releasing the results of its latest Primary Mortgage Market Survey. That’s a new low in Freddie Mac records dating to 1971.