The Mortgage
Bankers Association (MBA) announced
on Wednesday that the mortgage application volume in the U.S. climbed 10.4 per
cent in the week ended January 12, following a 9.9 per cent jump the week before. This marked the strongest weekly increase
in total mortgage application volume since mid-January 2023.
According to
the MBA’s data, last week’s rise in mortgage applications reflected a 10.8 per cent advance in mortgage refinance
applications and a 9.2
per cent gain in mortgage applications to purchase a home.
The report also
revealed that the average fixed 30-year mortgage rate fell from 6.81 per cent to 6.75 per
cent, the
lowest level in three weeks.
Commenting on
the latest survey results, Joel Kan, MBA's vice president and deputy chief
economist, noted that last week’s rise in mortgage applications was supported
by a broad-based drop in mortgage rates in response to a decrease in the
U.S. Treasury yields on incoming inflation data. “If rates continue to ease,
MBA is cautiously optimistic that home purchases will pick up in the coming
months,” he added.