Investing.com - The number of mortgage application in the U.S. rose sharply last week, as high volatility continued, industry data showed on Wednesday.
In a report, the Mortgage Bankers Association said their mortgage market index, a measure of mortgage loan application volume, rose by a seasonally adjusted 11.8% in the week ending October 16 to 432.7. That follows a drop of 27.6% to 387.0 in the preceding week.
"We expect that application volume will remain volatile over the next few weeks as the industry continues to implement TILA-RESPA integrated disclosures," said Mike Fratantoni, the MBA's chief economist, referring to the the Truth in Lending Act and the Real Estate Settlement Procedures Act of 1974.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances dipped to 3.95% from 3.99% in the previous week.
The survey covers over 75% of U.S. retail residential mortgage applications, according to MBA.