Home purchases rose considerably to 9.3% from a week ago, as reported by the Mortgage Bankers Association. The purchase index currently sits at the highest level it’s been since May of this year. The MBA also reported that the rise in reflected in the purchase index was preceded by a 17.2% rise in applications for FHA backed loans.
Jay Brinkmann, the Mortgage Bankers Association’s chief economist, said in a statement that “One possible driver of last week’s big increase in FHA applications was a desire by borrowers to get applications in before new FHA requirements took effect October 4th, which included somewhat higher credit score and down payment requirements.”
Along with the October 4th deadline for FHA applications, historically low interest rates continue to be a motivating factor for home buyers.