Mortgage applications grew by 16% last week, the biggest weekly increase since June, according to a report by the Mortgage Bankers Association. The news buoyed hopes that the housing market may finally stabilize after years of freefall.
“An improving job market is beginning to pave the way for an improving housing market,” Michael Fratantoni, the association’s research director, said in a press release.
Average interest rates below 5% for the second week in a row also helped mortgage applications rebound, Fratantoni said. The average interest rate on a 30-year mortgage last week was 4.93%.
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Image: Christopher Chappelear