The number of mortgage applications in the US climbed last week, a sign that the US housing market is stabilising.
According to the Mortgage Bankers Association (MBA), the loan applications index rose 16 percent in the week ended 4 March, the highest increase since June last year. MBA’s purchase index surged 13 percent, while the refinancing gauge climbed 17 percent.
“The housing market in the US still has a lot of challenges ahead of it,” said Michael Gregory, a Senior Economist at BMO Capital Markets. “Ultimately, it’s all about how many homes still are going to hit the market. People don’t want to buy homes, because they feel prices could fall further.”
The average rate for 30-year fixed mortgages also rose to 4.93 percent last week (from 4.84 percent), while 15-year fixed-rate mortgages stood at 4.17 percent.