‘Mortgage Applications Rebound’ After Big Fall

Loan demand ticked up last week, rebounding after last week’s slump in mortgage applications that plunged 12.8 percent, the Mortgage Bankers Association reports.

Applications for refinancing and home purchases rose 1 percent for the week ending Dec. 6. Broken out, refinance applications increased 2.1 percent, while applications for home purchases — viewed as a leading gauge for future home sales — rose 0.9 percent during the week.

The MBA reports that the average 30-year fixed-rate mortgage increased to its highest level since late September, averaging 4.61 percent last week. The prior week 30-year rates had averaged 4.51 percent. Fifteen-year fixed-rate mortgages also increased, rising to 3.66 percent from 3.56 percent over the prior week.

Source: “U.S. MBA Mortgage Applications Index Increased 1% Last Week,” Bloomberg (Dec. 11, 2013)