Record Low Rates Are Fueling a Surge in Home-Loan Applications

June 3, 2020, 1:41 PM

Applications for loans to purchase homes are surging, the latest sign that demand for houses has held up during the pandemic.

The Mortgage Bankers Association’s purchasing index rose 5.3% in the week ended May 29 to hit the highest level since late January. It has surged 62% since cratering on April 10, the biggest seven-week jump since 1994.

With mortgage rates at record lows, Americans who have been cooped up in their homes are scouting for new properties, hoping to find a bargain. That’s despite the economic fallout from the social-distancing guidelines that shut down much of the ...

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