US mortgage applications surge 12.5pc

(Sharecast News) - US mortgage applications surged 12.5% in the week ended 6 June, according to the Mortgage Bankers Association, following the prior week's 3.9% decline. Applications to purchase a home advanced 10.3%, while those to refinance a mortgage shot up 15.6%.

"Coming out of the Memorial Day holiday, mortgage applications increased to the highest level in over a month," said MBA deputy chief economist Joel Kan. "Despite ongoing uncertainty surrounding the economy, homebuyers seem to be taking advantage of loosening housing inventory in certain markets."

The weekly growth comes even as the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of $806,500 or less increased by one basis point to move back to 6.93%.



Reporting by Iain Gilbert at Sharecast.com