US mortgage applications surge 7 percent as rate drops to lo...| MENAFN.COM

Friday, 03 February 2023 03:46 GMT

US mortgage applications surge 7 percent as rate drops to lowest since October


(MENAFN) US mortgage applications indicated a weekly surge of 7 percent, whereas the 30-year fixed rate dropped to its worst rate in four months, as shown by a report issued on Wednesday by the Mortgage Bankers Association (MBA).

The Market Composite Index, an indicator of mortgage loan application capacity, increased 7.0 percent on a seasonally attuned basis for the week closing on the 20th of January, in comparison with the prior week. On an unadjusted basis, the index soared 1.0 percent in comparison to the last week.

The 30-year fixed mortgage rate dropped to 6.2 percent – its worst rate since the previous September.

"Mortgage rates declined for the third straight week, which is good news for potential homebuyers looking ahead to the spring homebuying season," MBAVice leader and Deputy Head Economist Joel Kan stated in a report.

He continued: "Homebuying activity remains tepid, but if rates continue to fall and home prices cool further, we expect to see potential buyers come back into the market. Many have been waiting for affordability challenges to subside."

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