Home Buyers Borrowing More Than Ever Before

Julie C. Nichols General

The Fiscal Times – Beth Braverman

The average loan size for home purchases reached $294,000 last week, the highest amount since the Mortgage Bankers Association started keeping records 25 years ago.

That figure signals where the action is in the housing market. “The record-high average loan size indicates that the strength of the market remains at the high end,” says Mike Fratantoni, the chief economist of the Mortgage Bankers Association.

While loan amounts increased, so did the cost of borrowing money. The average rate for a 30-year, fixed rate loan last week was 4.01 percent, the highest level so far this year and up from 3.96 percent the previous week, according to the Mortgage Bankers Association.

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