US Home Purchase Applications Increase to Highest Since April

Applications for home-purchase mortgages in the US rose to the highest level since April, signaling housing demand is picking up as borrowing costs hold below 7%.

The Mortgage Bankers Association’s index of mortgage applications to buy a home increased 7.5% to 174.3 in the week ended Jan. 19, according to data released Wednesday. The advance followed a 9.2% increase in the prior week that was the largest in a year.

The uptick comes as homebuyers get some relief from mortgage rates that neared 8% during the fall. While the contract rate on a 30-year fixed mortgage increased by 3 basis points to 6.78% last week, borrowing costs have been holding below 7% for more than a month.

The Federal Reserve has signaled it is done raising interest rates, and the housing industry is anticipating central bankers to start cutting rates this year.