The Mortgage
Bankers Association (MBA) announced
on Wednesday that the mortgage application volume in the U.S. increased 0.1 per
cent in the week ended April 5, following a 0.6 per cent fall the week before. This marked the first advance in
total mortgage application volume in four weeks.
According to
the MBA’s data, last week’s uptick in mortgage applications reflected a 9.9 per cent surge in mortgage
refinance applications that was offset by a 4.7 per cent plunge in
mortgage applications to purchase a home.
The report also
revealed that the average fixed 30-year mortgage rate increased
from 6.91 per cent to 7.01 per cent, the highest level in five weeks.
Commenting on
the latest survey results, Joel Kan, MBA’s vice
president and deputy chief economist, noted that mortgage rates moved higher
last week as several Federal Reserve officials reiterated a patient posture on
rate cuts. “Inflation remains stubbornly above the Fed’s target, and the broader
economy continues to show resiliency. Unexpectedly strong employment data
released last week further added to the upward pressure on rates,” he added.