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

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 ...