US mortgage applications rise 3.2%

US mortgage applications rose 3.2% in the week ended 9 December, the first gain in three weeks and the highest increase since September.

According to the Mortgage Bankers Association of America, the purchase index increased 4% month-on-month, while the refinancing one jumped 2.8%.

The increase comes as the 30-year mortgage rate edged up by one basis point to 6.42% but managed to hold close to levels not seen in roughly three months.

MBA economist Joel Kan said: "The ongoing moderation in home-price growth, along with further declines in mortgage rates, may encourage more buyers to return to the market in the coming months."

Reporting by Iain Gilbert at Sharecast.com