US mortgage applications rise 9.9%

Mortgage application volume rose 9.9% in the week ended 5 January, according to the Mortgage Bankers Association, the biggest increase in a year.

Applications to refinance a home loan surged 19% week-on-week and were 30% higher year-on-year, while applications for a mortgage to purchase a home rose 6% week-on-week but were 16% lower than at the same time a year ago.

The increase, which almost reversed last week's massive 10.7% drop, comes despite the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances increasing to 6.81% from 6.76%.

Reporting by Iain Gilbert at Sharecast.com