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October 22, 2014

Mortgage Applications Jump, Despite Rise in Rates

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Mortgage Applications Jump, Despite Rise in Rates

Loan demand for home purchases and refinancings was on the rise last week even though mortgage rates were at some of its highest averages in more than a year. 

Mortgage applications rose 16 percent for the week ending June 7, the Mortgage Bankers Association reports in its weekly index, which covers more than three-quarters of all U.S. residential mortgage applications. Broken out, both mortgage applications for refinancings and applications for home purchases rose 5 percent from the prior week. 

A stronger economy is prompting interest rates to rise in recent weeks. The average for the 30-year fixed-rate mortgage -- the most popular among home buyers -- jumped to 4.15 percent, which is its highest average since March 2012, the MBA reports. National averages for 15-year fixed-rate mortgages last week increased to 3.32 percent, the highest level since April 2012. 

Source: “U.S. Mortgage Applications Up 16% Last Week - MBA,” The Wall Street Journal (June 12, 2013)

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