Mortgage demand rises as mortgage interest rates fall

(NBC, KYMA/KECY) - Home mortgage demand is on the rise.

According to the Mortgage Bankers Association's (MBA) Seasonally Adjusted Index, total application volume increased by 7% last week; compared to the week before.

However, total purchase applications remained almost 39% lower than a year ago.

MBA Vice President Joel Kan said that while homebuying activity remains tepid, they expect to see potential buyers come back into the market "if rates continue to fall and home prices cool further."

Meanwhile, mortgage interest rates fell for the third straight week, dropping to the lowest level since September.

Last week, the 30-year fixed rate reached 6.2%. That rate was just about half that one year ago.