New data from the Mortgage Bankers Association shows national demand for purchase loans is strengthening to levels last seen in April, a sign the summer’s dip in housing demand could be only temporary.

The number of applications for purchase loans was up 16 percent in the week ending Sept. 17, compared to the week before, the MBA said.

“There was a resurgence in mortgage applications the week after Labor Day, with activity overall at its highest level in over a month, and purchase applications jumping to a high last seen in April 2021,” MBA Associate Vice President of Economic and Industry Forecasting Joel Kan said in a statement. “Housing demand is strong heading into the fall, despite fast-rising home prices and low inventory. The inventory situation is improving, with more new homes under construction and more homeowners listing their home for sale. Despite this week’s increase, purchase applications were still 13 percent lower than the same week a year ago.”

With mortgage interest rates remaining roughly at or below 3 percent over the last several weeks, homebuyers are still able to enter the market despite big increases in home prices over the last 18 months, Kan said.

Massachusetts market-watchers have been carefully eying demand for homes this summer and fall, looking to see whether or not the spring’s frenzy will return, or whether prices have risen far enough to put many buyers off.

Mortgage Demand Strong as Fall Opens

by Banker & Tradesman time to read: 1 min