US mortgage applications rose last week

NEW YORK: Applications for US home mortgages rose last week as demand grew for both purchase and refinancing even as interest rates rose, an industry group said on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, increased 1.3 percent in the week ended October 7.

The MBA's seasonally adjusted index of refinancing applications was up 1.3 percent, while the gauge of loan requests for home purchases gained 1.1 percent. The refinance share of mortgage activity was unchanged from the previous week at 79.1 percent of total applications.

Fixed 30-year mortgage rates averaged 4.25 percent, jumping 7 basis points from 4.18 percent the week before.

The average loan size for home purchases in September was $210,863, down from $212,736 in August. The average loan size for refinancing was $237,632 last month compared to $241,323 in August.

Copyright Reuters, 2011