US mortgage applications rise 1.8pc, purchase applications remain below last year's level

(Sharecast News) - US mortgage applications increased 1.8% in the week ended 10 April, according to the Mortgage Bankers Association of America, the first rise in five weeks following a 0.8% drop in the prior week. Applications to refinance a mortgage, which are generally more sensitive to weekly interest rate moves, jumped 5.1%, while applications to purchase a home fell 1%.

MBA economist Joel Kan said: "Given the evolving situation in the Middle East and its impact on energy and commodity prices, mortgage rates declined last week.

However, Kan also noted that purchase activity "remained subdued as potential homebuyers remained hesitant given the current economic uncertainty, which kept purchase applications below last year's level for the second consecutive week".

Last week's increase comes as the average 30-year fixed mortgage rate for conforming loans of $806,500 or less fell for a second week in a row to 6.42% - the lowest value in roughly a month.







Reporting by Iain Gilbert at Sharecast.com