Mortgage Applications Rise as Rates Fall
By Luciana Lopez
NEW YORK -- Applications for U.S. home mortgages rose as refinancing applications gained in the latest week, an industry group said Wednesday.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, rose 0.4 percent to 405.2 in the week ended Jan. 31.
The index hit its lowest level since December 2000 at the end of last year, soon after the U.S. Federal Reserve announced it would start reducing its $85 billion a month bond-buying program as the economy grows strong enough to stand on its own.
The interest rate on fixed 30-year mortgages averaged 4.47 percent last week, down five basis points from the previous week.
The MBA's seasonally adjusted index of refinancing applications rose 2.9 percent. The gauge of loan requests for home purchases, a leading indicator of home sales, fell 3.8 percent.
The survey covers over 75 percent of U.S. retail residential mortgage applications, according to MBA.