US mortgage applications surge 10.9pc

(Sharecast News) - US mortgage applications were up by double digits in the week ended 8 August, according to the Mortgage Bankers Association of America. Mortgage applications surged 10.9% week-on-week, building on the prior week's unrevised 3.1% increase and marking the sharpest increase in mortgage demand in the last two months.

Applications to refinance a mortgage, which are more sensitive to short-term changes in interest rates, shot up 23% week-on-week, while applications to purchase a home rose just 1.4%.

Last week's increase came alongside a 10 basis point reduction in benchmark mortgage rates in the period to their lowest level in four months.









Reporting by Iain Gilbert at Sharecast.com