U.S. weekly mortgage applications jump 8.6 percent

The Mortgage Bankers Association (MBA) reported on Wednesday the mortgage application volume in the U.S. surged 8.6 percent in the week ended April 16, following a 3.7 percent drop in the previous week. This was the first increase in seven weeks and the strongest advance since early January.

According to the report, refinance applications surged 10.4 percent, while applications to purchase a home rose 5.7 percent.

Meanwhile, the average fixed 30-year mortgage rate decreased from 3.27 percent to 3.20 percent, the lowest level in eight weeks.

“Mortgage rates dropped to their lowest levels in around two months, prompting a small resurgence in refinance activity after six weeks of declines,” noted Joel Kan, MBA’s associate vice president of economic and industry forecasting. “Borrowers acted on the decrease in rates for most loan types, with both conventional and government refinance applications showing gains.”