The Mortgage Bankers Association revealed that mortgage applications have risen by 3.8% according to a report from HousingWire.
"Applications rose significantly for Federal Housing Administration loans, as FHA borrowers sought to refinance their mortgages thanks to near-yearly lows in interest rates on FHA loans," according to the report.
"Joel Kan, MBA’s associate vice president of economic and industry forecasting, said low mortgage rates continue to be on-trend as 2019 comes to an end, and mortgage applications responded accordingly last week."
Kan also revealed that the 30-year fixed mortgage rate stayed under 4% for four straight weeks while FHA rates decreased to the lowest level of 2019,.
"According to the MBA, the seasonally adjusted Purchase Index fell by 0.4% from one week earlier, while the unadjusted Purchase Index increased by 35% from the previous week," according to the report.
To learn more about the surge in FHA loans, click here.