Tags: mortgage | demand | home loans | rates

MBA: Mortgage Activity Rises for First Time in 4 Weeks With 7 Percent Jump

MBA: Mortgage Activity Rises for First Time in 4 Weeks With 7 Percent Jump

(iStock Photo)

Wednesday, 10 August 2016 12:15 PM

 

Total weekly applications for U.S. home mortgages rose for the first time in four weeks as mortgage rates fell for a second week, according to data from an industry group released on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of total mortgage activity rose 7.1 percent in the week ended Aug. 5. It reached a three-year peak a month earlier.

Interest rates on 30-year fixed-rate mortgages, the most widely held type of U.S. home loans, declined last week despite a rise in benchmark Treasury yields.

Applications for loans to refinance and to purchase homes increased last week.

The industry group's seasonally adjusted index on mortgage activity for refinancing rose 10 percent from the prior week. It reached its highest level since June 2013 in the week ended on July 8.

Its seasonally adjusted index of mortgage activity for home purchases, a leading indicator of housing sales, rose 3 percent last week, rebounding from a five-month low seen the previous week.

The share of weekly refinancing requests was 62.4 percent of total applications, compared with 60.7 percent the previous week, the Washington-based group said.

Meanwhile, the average rate on "conforming" 30-year home mortgages, or loans with balances of $417,000 or less, fell to 3.65 percent last week from 3.67 percent, MBA said.

The average 30-year rate touched 3.60 percent in the week ended July 8, which was the lowest since May 2013 and not far from the historic low of 3.47 percent struck in December 2012, according to MBA data.

Mortgage rates fell despite last week's rise in Treasury yields in reaction to a surprisingly strong July jobs report.

The benchmark 10-year Treasury yield rose 12 basis points last week to 1.582 percent before falling to 1.523 percent early Wednesday, according to Reuters data.

 

© 2019 Thomson/Reuters. All rights reserved.

   
1Like our page
2Share
StreetTalk
Total weekly applications for U.S. home mortgages rose for the first time in four weeks as mortgage rates fell for a second week, according to data from an industry group released on Wednesday.The Mortgage Bankers Association said its seasonally adjusted index of total...
mortgage, demand, home loans, rates
296
2016-15-10
Wednesday, 10 August 2016 12:15 PM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved