Mortgage purchase applications hit 11-year high, with 'pent-up demand' for suburbs

Americans have their eyes on suburban and rural areas, according to recent data

There’s no place like home, especially during a pandemic.

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U.S. mortgage applications to buy a home recently hit an 11-year high, as shoppers reportedly look to the suburbs amid the ongoing COVID-19 pandemic.

The Mortgage Bankers Association said Wednesday that the interest rate on a 30-year fixed-rate mortgage, the most popular home loan in America, fell to 3.30 percent during the week ending June 12, from 3.38 percent the week prior.

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U.S. mortgage applications recently hit an 11-year high, as shoppers reportedly look to the suburbs amid the ongoing outbreak of COVID-19. (iStock)

Purchase applications jumped 8 percent from the previous week, marking the highest level in more than 11 years, the MBA said. Meanwhile, refinancing applications rose 10 percent, the highest since late April.

“The housing market continues to experience the release of unrealized pent-up demand from earlier this spring, as well as a gradual improvement in consumer confidence,” said Joel Kan, associate vice president of economic and industry forecasting at the MBA.

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When hunting for a new home, Americans have their eyes on suburban and rural areas, according to recent data from Realtor.com. Property views for homes in suburban zip codes jumped by 13 percent in May, nearly double the rate of urban areas, according to the data. In rural areas, listing views were up 16 percent during that same period.

“This migration to the suburbs is not a new trend, but it has become more pronounced this spring,” said Javier Vivas, director of economic research at Realtor.com.

“After several months of shelter-in-place orders, the desire to have more space and the potential for more people to work remotely are likely two of the factors contributing to the popularity of the burbs.”

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