U.S. mortgage applications rise as rates remain below 3% -MBA By Reuters

U.S. mortgage applications rise as rates remain below 3% -MBA By Reuters

© Reuters. FILE PHOTO: New townhomes are seen under construction while building material supplies are in high demand in Tampa, Florida, U.S., May 5, 2021. REUTERS/Octavio Jones

By Evan Sully

(Reuters) – Mortgage applications rose last week as the key 30-year mortgage rate held below 3% for a second straight week.

The Mortgage Bankers Association (MBA) said on Wednesday its average contract interest rate for traditional 30-year mortgages inched up to 2.99% from 2.97% in the week ending Aug. 6. The seasonally adjusted market index tracking mortgage applications rose 2.8% from a week earlier, the MBA said.

“Homeowners continue to respond to lower rates, with refinance activity climbing to the highest level since February 2021,” Joel Kan, MBA’s associate vice president of economic and industry forecasting, said in a statement.

After hitting record lows late last year below 2.9%, mortgage rates climbed in the first part of this year and peaked in the spring. Rates have been drifting lower since, held down in large part by the U.S. Federal Reserve’s extraordinary stimulus measures aimed at helping the economy rebound from the coronavirus pandemic.

The MBA’s mortgage market index rise reflected a 3.2% increase in applications to refinance existing loans, while purchase applications rose 1.8%.

“With low for-sale inventory keeping home-price appreciation in many markets at record highs, the jump in FHA purchase applications is potentially a sign that more first-time buyers are finding purchase options despite the high prices,” Kan said.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Leave a Reply