NEW YORK: Applications for US home mortgages rose last week as interest rates dropped to their lowest level since June 2013, 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, rose 5.6 percent in the week ended Oct. 10.
The MBA's seasonally adjusted index of refinancing applications rose 10.6 percent, while the gauge of loan requests for home purchases, a leading indicator of home sales, fell 0.7 percent.
Fixed 30-year mortgage rates averaged 4.20 percent in the week, the lowest since June 2013. They were down 10 basis points from 4.30 percent the week before.
"Growing concerns about weak economic growth in Europe caused a flight to quality into U.S. assets last week, leading to sharp drops in interest rates," said Mike Fratantoni, MBA's chief economist.
The survey covers over 75 percent of U.S. retail residential mortgage applications, according to MBA.
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