US mortgage applications jump more than 10% to 6-month high

By Ovunc Kutlu

ISTANBUL (AA) - US mortgage applications jumped more than 10% to their highest in six months, according to a report Wednesday by the Mortgage Bankers Association (MBA).

The market composite index, a measure of mortgage loan application volume, soared 10.4% on a seasonally adjusted basis for the week ending Jan. 12. It marked the highest since July last year.

On an unadjusted basis, the index jumped 26% compared with the previous week.

The sudden jump in the application volume is a result of falling loan rates, according to Joel Kan, MBA vice president and deputy chief economist.

"Mortgage rates declined across all loan types as Treasury yields moved lower last week on incoming inflation data, which helped to support a rise in mortgage applications," Kan said in a statement.

He added that if rates continue to ease, home purchases may pick up in the coming months.

The average contract interest rate for a 15-year fixed-rate mortgage, meanwhile, fell to 6.24% from 6.41%.

The MBA survey covers more than 75% of US retail residential mortgage applications.