US weekly mortgage demand hits two-year high

U.S. home loan demand rose sharply in the week ended Nov. 19, reaching a two-year high, the Mortgage Bankers Association (MBA) said on Wednesday.

The total loan applications index, a measure of mortgage loan application volume, rose 2.1 percent on a seasonally adjusted basis from a week earlier. Mortgage loan application volume had fallen sharply by 14.4 percent in the previous week.

The purchase index went up by 14.4 percent, reaching the highest level since the expiration of the homebuyer tax credit in April. Applications for refinancing loans decreased 1 percent last week.

“The increase in purchase applications last week aligns with other incoming data suggesting that consumers are feeling somewhat more confident with their financial situation,” said Michael Fratantoni, vice president of Research and Economics, MBA.

While the average contract interest rates for 30-year fixed rate mortgage increased to 4.50 percent from 4.46 percent in the previous week, 15-year fixed-rate mortgages fell to 3.83 percent from 3.87 percent.