US mortgage applications jump as loan rates fall: MBA

[NEW YORK] US mortgage applications jumped last week as interest rates on 30-year fixed-rate mortgages fell to their lowest in more than a year, supporting the view of a sturdy housing market, data from the Mortgage Bankers Association showed on Wednesday.

The Washington-based industry group's mortgage market index rose to 520.2 in the week ended April 8, up 10 per cent from the prior week. The latest reading that was adjusted for seasonally factors was the strongest since the week of Feb 21.

The weekly seasonally-adjusted gauge on mortgage requests to buy homes rose 8 per cent to 241.9, which was the highest since October 2015 and the second highest since May 2010, MBA said.

The seasonally-adjusted barometer on applications to refinance increased 11.3 per cent last week to 2,122.0, the highest in seven weeks.

The average interest rate on 30-year mortgages, the most widely held type of US home loan, fell 4 basis points to 3.82 per cent, which was the lowest since January.

REUTERS