Loan Applications to Buy U.S. Homes Climb to 11-Year High

Loan applications to purchase U.S. homes increased to an 11-year high last week as Americans took advantage of a drop in mortgage rates to their lowest since late 2016.

The Mortgage Bankers Association’s purchase index climbed 5.3% in the week ended Jan. 24 to 313.7, the best reading since the beginning of 2009, the Washington-based group said Wednesday. The contract rate on a 30-year fixed loan fell to 3.81% from 3.87%.