Mortgage applications for US home purchases increased for the second time in three weeks despite a pickup in mortgage rates, suggesting underlying housing demand is stabilizing.
(Bloomberg) — Mortgage applications for US home purchases increased for the second time in three weeks despite a pickup in mortgage rates, suggesting underlying housing demand is stabilizing.
The Mortgage Bankers Association’s gauge of home purchases increased 4.6% in the week ended April 21, data showed Wednesday. At the same time, the contract rate on a 30-year fixed mortgage rose 12 basis points to a more than one-month high of 6.55%.
While there are signs the worst of the housing rout may be coming to an end, a sustained pickup in borrowing costs would make it difficult for the real estate recovery to gather momentum.
The report also showed the refinancing index increased and helped drive a 3.7% gain in the MBA’s overall mortgage applications gauge.
The MBA survey, which has been conducted weekly since 1990, uses responses from mortgage bankers, commercial banks and thrifts. The data cover more than 75% of all retail residential mortgage applications in the US.
–With assistance from Jordan Yadoo.
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