Loan demand rose last week, surging
11.2 percent, as interest rates eased slightly from their yearly highs,
according to the Mortgage Bankers Association’s latest index of mortgage
application activity for the week ending Sept. 13.
The MBA’s mortgage index reflects applications for home purchases and
refinancings. Broken out, the refinance index soared nearly 18 percent
last week while the purchase index, a gauge for future home buying, rose
3 percent.
The rebound in mortgage applications follows a recent drop in
applications the previous week that had taken loan demand to its lowest
point since November 2008. Mortgage applications had fallen 13.5 percent
the previous week, as rising interest rates had prompted refinancers
and home buyers to take a pause.
Last week, mortgage rates dropped slightly from their yearly highs.
The 30-year fixed-rate mortgage dropped 5 basis points to 4.75 percent,
falling from the previous week’s yearly high of 4.8 percent, the MBA
reports.
Source: “U.S. mortgage applications rise as rates ease - MBA,” Reuters (Sept. 18, 2013)