U.S. mortgage applications rise as purchases rebound
By Evan Sully
(Reuters) – Mortgage applications in the United States rose last week after three straight weeks of decline as buying activity rebounded despite a limited supply of homes for sale.
The Mortgage Bankers Association (MBA) said on Wednesday that its seasonally adjusted stock index rose 4.2% in the week ending June 11 from the previous week. This reflects a 5.5% increase in refinancing requests.
Last week, refinancing fell to its lowest level since February 2020, as fewer homeowners were able to apply during a work week shortened by the Memorial Day vacation.
The purchasing index rose 1.6% from the previous week.
“A nearly 5% increase in government purchase requisitions accounted for most of last week’s gain while moderating recent growth in loan sizes,” said Joel Kan, vice-president. associate chairman of MBA’s economic and industrial forecasting, in a statement.
“Purchase requests were still down 17% from a year ago, when the mortgage market began to see strong increases in activity after the close.”
The average contractual interest rate for traditional 30-year mortgages fell for the third week in a row to 3.11% from 3.15% the week before, the lowest since early May.
(Reporting by Evan Sully; Editing by Richard Chang)