US mortgage applications fall as interest rates rebound

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Mortgage applications in the US decreased, owing to a rebound in interest rates from record lows, according to the latest Weekly Mortgage Applications Survey released by the Mortgage Bankers Association (MBA).

The Market Composite Index of US mortgage applications, which are a gauge of mortgage application volume, slid 5.0 percent in the week ending 20 January on a seasonally adjusted basis from the previous week.

The seasonally adjusted Purchase Index inched down 5.4 percent, while the Refinance Index fell 5.2 percent from the previous week.

However, the four-week moving average for the seasonally adjusted Purchase Index inched up 0.47 percent from the previous week, while the seasonally adjusted Market Index climbed 4.12 percent and the average for the Refinance Index jumped 4.85 percent.

The survey also revealed that the total refinance share for mortgage applications fell 81.3 percent, from 82.2 percent a week ago.

In addition, the average interest rate for 30-year fixed-rate home loans jumped 3.97 percent last week, from a record low of 3.91 percent in the preceding week. Meanwhile, the average rate for 15-year fixed-mortgages increased to 3.40 percent from 3.33 percent.

The MBA survey covers more than 75 percent of all US retail residential mortgage applications. Respondents include commercial banks, mortgage bankers and thrifts.

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