The Mortgage
Bankers Association (MBA) reported on
Wednesday that the mortgage application volume in the U.S. climbed 3.3 per cent
in the week ended April 12, following a 0.1 per cent increase the week before.
According to
the MBA’s data, last week’s jump in mortgage applications was primarily due to
a 5.0 per cent surge in mortgage applications to purchase a home. In addition,
mortgage refinance applications rose 0.5 per cent.
The report also
revealed that the average fixed 30-year mortgage rate increased
from 7.01 per cent to 7.13 per cent, the highest level since the week ended
December 1, 2023 (7.17 per cent).
Commenting on
the latest survey results, Joel Kan, MBA’s vice
president and deputy chief economist, noted that rates increased for the second
consecutive week, driven by incoming data indicating that the economy remains
strong and inflation is proving tougher to bring down. “Despite these higher rates, application activity picked up,
possibly as some borrowers decided to act in case rates continue to rise,” he added.