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Mortgage applications in the US are rising despite the highest level in four months

(MENAFN) Despite mortgage rates hitting a four-month high, U.S. mortgage applications saw an increase last week, according to a report released Wednesday by the Mortgage Bankers Association (MBA).

The composite market index, which serves as a benchmark for mortgage applications, rose 3.3 percent on a seasonally adjusted basis for the week ended April 12. On an unadjusted basis, the index recorded an increase of 4 percent compared to the previous week. This increase in mortgage applications indicates continued activity in the housing market, despite the upward trend in mortgage rates.

“Interest rates rose for a second week in a row, driven by incoming data that suggests the economy remains strong and inflation is proving harder to reduce,” noted Joel Kan, vice president and deputy chief economist at the MBA. about the findings. in a statement.

Last week, the average contract rate for a 30-year mortgage rose to 7.13 percent, the highest level since December, compared to 7.01 percent the week before.

Similarly, the average contract interest rate for 15-year mortgages rose from 6.46 percent to 6.64 percent.

“Despite these higher rates, application activity increased, possibly because some borrowers decided to act in case interest rates continued to rise,” Kan stated.

The MBA survey covers more than 75 percent of residential mortgage applications in the US.

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