The Mortgage
Bankers Association (MBA) announced
on Wednesday that the mortgage application volume in the U.S. surged by 5.4 per cent in the week ended December 6, following a 2.8
per cent jump the week before.
According to
the MBA’s data, last week’s increase in mortgage applications reflected
a 27.2 per cent climb in mortgage refinance applications that was partly offset by a 4.1 per cent decline
in mortgage applications to purchase a home.
The report also
showed that the average fixed 30-year mortgage rate slipped from 6.69 per cent to 6.67
per cent, the lowest level since the week ended October 18 (6.52 per cent).
Commenting on
the latest survey results, Joel Kan, MBA’s vice president and deputy chief
economist, noted that purchase applications remained relatively strong and have
shown annual gains in all but one week over the past three months. “In addition
to lower rates, purchase activity continues to be supported by sustained
housing demand and inventory that continues to grow gradually in many markets,” he added.