The Mortgage
Bankers Association (MBA) reported on
Wednesday that the mortgage application volume in the U.S. rose 3.7 per cent in
the week ended February 2, following a 7.2 per cent tumble the week before.
According to
the MBA’s data, last week’s increase in mortgage applications reflected a 12.3 per cent surge in mortgage refinance
applications that was partly offset by a 0.6
per cent drop in mortgage applications to purchase a home.
The report also
revealed that the average fixed 30-year mortgage rate edged
up from 6.78 per cent to 6.80 per cent, the highest level in four weeks.
Commenting on
the latest survey results, Joel Kan, MBA's vice president and deputy chief
economist, noted that mortgage rates had stayed close to where they started the
year, despite swings in Treasury yields because of slowing inflation offset by
stronger-than-expected readings on the job market. “Rates at these levels have
not prompted much of a reaction in the refinance market, as most homeowners
have mortgages with much lower rates,” he added. “Purchase activity has been
strong to start 2024 compared to the final quarter of 2023. However, activity
is still weaker than a year ago because of low housing supply."