Applications for U.S. Home Loans Hit Highest Level Since 2009

(Bloomberg) -- More and more Americans are looking to take advantage of mortgage rates hovering near record lows.

The Mortgage Banker Association’s purchasing index rose 3.5% in the week ended June 12, hitting the highest level since January 2009. It was the ninth straight gain in applications for loans to purchase homes, which have surged in recent weeks after cratering in early April.

The housing market froze as the coronavirus spread across the U.S. and battered the U.S. economy. But demand has held up better than expected, despite social-distancing guidelines. Americans stuck at home are looking to upgrade their properties and, in some cases, move away from cities. Low inventory has propped up prices in some markets.

Credit standards have tightened, meaning some Americans applying for loans won’t be approved. Others could struggle to find homes to buy in their price range.

The MBA’s measure of refinancing also rose, gaining for the second straight week.

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