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Boom in US mortgage applications

Adam Williams
Written By:
Adam Williams
Posted:
Updated:
05/08/2015

Mortgage applications in the Unites States are up almost a quarter, compared to a year ago.

Figures from the Mortgage Bankers Association (MBA) said applications for home finance last week were 23% higher than a year ago. This follows a 3% rise in the last week.

Rate sensitive remortgage borrowers have flocked to the market with the number of refinancing applications rising 6% week-on-week.

Your Mortgage reported last week that many mortgage products in the United States were now on offer below 4%. Global factors such as the decline in the Chinese stock market had attracted investors to the relative safety of the US market, analysts said.

Across the whole market the average mortgage rate was 4.3%, its lowest level for three months. The average loan size has also increased following a period of decline.

“Despite recent concerns about the economy, both purchase and refinance applications increased strongly in response to lower interest rates last week. Refinance activity was the highest since May when rates were last at this level,” said Lynn Fisher, MBA’s vice president of research and economics.

“The increase in purchase activity was also notable for this time of year.”

The MBA survey covers 75% of all mortgage applications in the United States.


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