The Mortgage
Bankers Association (MBA) reported Wednesday that the mortgage application volume in the U.S. rebounded 9.9 per
cent in the week ended January 5, following a 10.7 per cent tumble the week before. This was the strongest weekly rise in total
mortgage application volume in one year.
According to
the MBA’s data, last week’s surge in mortgage applications reflected a 18.8 per cent climb in mortgage refinance
applications and a 5.6
per cent jump in mortgage applications to purchase a home.
The report also
showed that the average fixed 30-year mortgage rate increased from 6.76 per cent to 6.81
per cent, the
highest level in three weeks.
Commenting on
the latest survey results, Joel Kan, MBA's vice president and deputy chief
economist, noted the increase in purchase and refinance applications for both
conventional and government loans is promising to start the year but was likely
due to some catch-up in activity after the holiday season and year-end rate
declines. “Mortgage rates and applications have been volatile in recent weeks
and overall activity remains low,” he added.