US mortgage applications rise with record low rates

Source:Xinhua Published: 2012-9-13 9:43:33

The US mortgage applications last week climbed after five consecutive weeks of decline, as mortgage rates fell back to all-time lows, a survey revealed Wednesday.

The Market Composite Index of US mortgage applications, a measure of mortgage loan application volumes, increased 11.1 percent in the week ending Sept. 7 from the previous week, according to the latest Weekly Mortgage Applications Survey released Wednesday by the US Mortgage Bankers Association.

The Refinance Index increased 12 percent from the previous week, with its share of mortgage activity rising to 80 percent of total applications. The seasonally adjusted Purchase Index jumped by 8 percent from a week earlier.

The average 30-year contract interest rate dipped to 3.5 percent from 3.54 percent in the previous week, and the 15-year contract interest rate dropped to 3.07 percent from 3.10 percent, both returning to record lows.

The current low mortgage rates are providing an important incentive to house refinancing and buying, though tight mortgage credit and a sluggish economic recovery is hindering a rebound in the housing market.

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