Mortgage Applications in U.S. Jumped

Applications for home mortgages in the U.S. rose as both refinancing and purchase applications climbed, said an industry organization.

The Mortgage Bankers Association announced its activity for mortgage applications that are seasonally adjusted, which includes both the purchase and refinancing demands.

The average for the two was 13.9% during the week that ended September 18, while the refinancing demand was up 17.7% and the gauge of loan request, for purchases of home, a leading indicator of sales of home was up 9.1% to its highest since June.

The chief economist at the MBA Mike Fratantoni said that the group saw a substantial volatility of rate last week surrounding the meeting of the FOMC and the rate declines as the week was coming to an end drove the applications up for both those prospective buyers of homes and for those borrowers who are looking to do a refinance.

Last week, the Federal Reserve decided to hold its benchmark rate of interest at a level that is near zero.

The 30-year fixed rate mortgage remained at the same for the week even though there had been a substantial fluctuation intra week.

The share of refinance of the total activity for mortgages increased to 58.3% of the application from 56.3% the prior week.

The 30-year fixed mortgage rate was at an average of 4.09% for the week and was unchanged from the prior week.

The survey includes more than 75% of the retail residential mortgage apps in the U.S. according to the group.

The housing market has steadily improved since the crash of the financial crisis over 10 years ago.

An uptick in the number of application for refinancing or purchasing might be seen this month prior to the next Federal Reserve meeting in October as the central bank could decide to raise it lending rate and cause mortgage rates in turn to increase as well.

Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with our FREE daily email newsletter.