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U.S. MBA mortgage applications rise 2.7% last week

Published 04/06/2016, 07:09 AM
© Reuters.  U.S. MBA mortgage applications rise 2.7%

Investing.com - The number of mortgage applications in the U.S. rose for the first time in four weeks last week, as interest rates pushed lower, industry data showed on Wednesday.

In a report, the Mortgage Bankers Association said their mortgage market index, a measure of mortgage loan application volume, increased by a seasonally adjusted 2.7% in the week ending April 1 to 472.8. That follows a fall of 1.0% to 460.5 in the preceding week.

Refinance volume jumped 7% week to week. "This was the first increase in refinance activity after six weeks of declines," said MBA economist Joel Kan.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances declined to 3.86% from 3.94% in the preceding week.

"Rates fell last week as a more cautious message from Fed Chair Janet Yellen about the economic outlook and continuing concerns about weaker growth abroad kept demand for U.S. Treasurys high," Kan added.

The survey covers over 75% of U.S. retail residential mortgage applications, according to MBA.

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