WASHINGTON, Feb. 27 (Xinhua) -- Mortgage applications in the United States rose last week, as homebuyers were responding favorably to stable mortgage rates, Mortgage Bankers Association (MBA) said on Wednesday.
For the week ending Dec. 22, MBA's market composite index, a measure of mortgage loan application volume, rose 5.3 percent from one week earlier.
"Mortgage rates were little changed last week, but as we anticipated, homebuyers are responding favorably to this more stable rate environment," said Mike Fratantoni, senior vice president and chief economist of MBA.
The refinance index, a gauge of mortgage refinance activity in the United States, increased 5 percent from the previous week, according to MBA.
"Refinance application volume increased as well, with the index reaching its highest level in a month. Borrowers with larger loans tend to be more responsive for a given drop in rates, and competition for these loans is fierce," said Fratantoni.
Mortgage rate in the United States have maintained a downward pattern for weeks as 30-year fixed-rate mortgage (FRM) dropped to 4.35 percent, according to the latest figure released by U.S. Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac, which is scheduled to release the 30-year FRM rate for the week ending Feb. 28.
