Columbia’s MBA say US mortgage applications rise; 30-yr fixed mortgage falls to 2.96%

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Columbia’s MBA say US mortgage applications rise; 30-yr fixed mortgage falls to 2.96%

On Wednesday, the Washington DC-based Mortgage Bankers Association (MBA) said in a statement that the number of applications for US home mortgages had clawed back last week following three straight weeks of declines, as purchases seemed to have rebounded despite a supply restrain alongside a record rise in US house prices.

Apart from that, according to data from US mortgage buyer Freddie Mac, long-term average US mortgage rates fell last week ahead of a US Fed policy meet with the most popular 30-year fixed home loans falling to 2.96 per cent compared to a 2.99 per cent a week earlier.

Alongside this, average US 15-year home loans fell last week to 2.23 per cent from a 2.27 per cent a week earlier, while a decline in long-term home loans appeared to have fared well for an apparently struggling US housing market.

US Mortgage applications rise last week

On top of that, according to the Washington DC-based national real estate financing body comprised of over 2,200 member companies, the Mortgage Bankers Association’s seasonally adjusted market index for mortgage applications surged 4.2 per cent during the week that ended on June 11 from a week earlier, while there had been a 5.5 per cent increase in applications for refinancing.

Nonetheless, number of applications for refinancing fell to their lowest since February 2020 last week. However, citing that purchasing applications were still down by more than 17 per cent compared to a year earlier, when a booming US housing market was anchoring the economy alongside mega-cap tech conglomerates, Mortgage Bankers Association’s (MBA) associate Vice President of economic and industry forecasting, Joel Kan said in a statement, “An almost 5 percent increase in government purchase applications drove most of last week's gain while also tempering the recent growth in loan sizes.