US mortgage applications rise for sixth straight week as economy regains footings



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US mortgage applications rise for sixth straight week as economy regains footings
US mortgage applications rise for sixth straight week as economy regains footings (Provided by Financial World)

The Washington-based US Mortgage Bankers Association data released on Wednesday had revealed an encouraging aspect for the US housing market since applications for house mortgages climbed for sixth straight week in a row, indicating that the US housing market could play a pivotal role to dig the economy out of a horrendous recession despite a lingering fiscal pain stemmed from a higher unemployment rate.

In point of fact, late on the day, the US Mortgage Bankers Association (MBA) said in a statement that its Purchase Index on a seasonally adjusted basis rose by 8.6 per cent last week from a week earlier, while the reading has been 9 per cent higher compared to the same time a year earlier, suggesting that a multi-year low interest-rate again might be tempting people to dig deeper into the US housing market as it had been before the onset of the pandemic outbreak in the United States.

Apart from that, Wednesday’s Purchase Index data revealed from the US MBA (Mortgage Bankers Association) had also reported a 54 per cent rise compared to April.

Sustained Mortgage gains suggest a leap forward towards economic recovery

Meanwhile, as the US mortgage market has reported a sustained gain spanning in to its sixth straight week during the week that ended on May 24th, multiple industry analysts were quoted saying that the readings were pointing towards a climb in first-time buyers for both new and existing homes alongside a gradual economic recovery which appears to have improved a timorous homebuilders’ sentiment in May.

Besides, referring to a US Housing market which seems to have found it path towards a rapid recovery, the US MBA’s (Mortgage Bankers Association) Associate Vice President of Economic and Industry Forecasting, Joel Kan said following the release of last week’s’ Purchase Index, “The home purchase market continued its path to recovery as various states reopen, leading to more buyers resuming their home search.

The purchase loan amount has increased steadily in recent weeks and is now at its highest level since mid-March”.