Mortgage
applications rose for the first time in three
weeks as interest rates fell sharply and demand
surged for home purchase and refinance loans, an
industry group said Wednesday.
The
Mortgage Bankers Association said its seasonally
adjusted index of mortgage applications, which
includes both purchase and refinance loans, for
the week ended Aug. 3 increased 8.1 percent to
656.5, its highest level since early June.
The four-week moving average of mortgage
applications, which smoothes the volatile weekly
figures, was up 1.2 percent to 626.
Borrowing
costs on 30-year fixed-rate mortgages, excluding
fees, averaged 6.41 percent, down 0.09 percentage
point from the previous week. Interest rates were
below year-ago levels at 6.45 percent.
The
MBA's seasonally adjusted purchase index, widely
considered a timely gauge of
U.S. home sales, rose 7.4 percent to 447.4. The index
was also above its year-earlier level of 388.9.
The
group's seasonally adjusted index of refinancing
applications soared 9.1 percent to 1,881.1. The
index was also above its year-earlier level of
1,518.1.
The
refinance share of applications increased to 39.9
percent from 39.4 percent the previous week.
Fixed
15-year mortgage rates averaged 6.16 percent, down
from 6.20 percent.
Rates
on one-year adjustable-rate mortgages (ARMs)
decreased to 5.69 percent from 5.73 percent.
The
ARM share of activity increased to 22.5 percent,
up from 22.3 percent the previous week.
U.S. housing industry
indexes, in general, tend to be volatile, but
recent data suggest a glimmer of hope may be on
the horizon for the hard-hit sector.
The
National Association of Realtors last week said
pending sales of previously owned
U.S. homes rose at their fastest pace in more than
three years in June.
The
MBA's survey covers about 50 percent of all
U.S. retail residential loans. Respondents include
mortgage banks, commercial banks and thrifts.
Newsletter information provided
by CNNMoney
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