Mort­gage ap­pli­ca­tions up in latest week: MBA

The Pak Banker - - BUSINESS -

CAL­I­FOR­NIA: Ap­pli­ca­tions for U.S. home mort­gages rose last week as re­fi­nanc­ing ap­pli­ca­tions jumped, an in­dus­try group said on Wed­nes­day.

The Mort­gage Bankers As­so­ci­a­tion said its sea­son­ally ad­justed in­dex of mort­gage ap­pli­ca­tion ac­tiv­ity, which in­cludes both re­fi­nanc­ing and home pur­chase de­mand, rose 3.6 per­cent in the week ended Aug. 14. The MBA's sea­son­ally ad­justed in­dex of re­fi­nanc­ing ap­pli­ca­tions climbed 7.2 per­cent, hit­ting its high­est level since May. The gauge of loan re­quests for home pur­chases, a lead­ing in­di­ca­tor of home sales, dipped 1.1 per­cent.

The re­fi­nance share of to­tal mort­gage ac­tiv­ity rose to 55.5 per­cent of ap­pli­ca­tions from 53.1 per­cent the week be­fore. Fixed 30-year mort­gage rates av­er­aged 4.11 per­cent in the week, the low­est level since May. They were down 2 ba­sis points from 4.13 per­cent the pre­vi­ous week. "Con­cerns about the Chi­nese econ­omy pushed in­ter­est rates down last week," said Lynn Fisher, MBA's vice pres­i­dent of re­search and eco­nom­ics. "The pick-up in re­fi­nance ac­tiv­ity was led by larger loan sizes on av­er­age, as con­tin­ued in­vestor in­ter­est drove jumbo in­ter­est rates down even fur­ther." The sur­vey cov­ers over 75 per­cent of U.S. re­tail residential mort­gage ap­pli­ca­tions, ac­cord­ing to MBA.

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