WASHINGTON - Reported by www.boston.com that mortgage applications jumped last week as the decline in borrowing costs led to the largest increase in funding over two years.
Mortgage Bankers Association's index increased 22 percent in the period ended August 5 from the previous week, the Washington group reported yesterday. Measure groups refinancing surged 30 percent, the biggest increase since March 2009, while the gauge purchases declined 0.9 percent. Average rate of 30-year fixed mortgage fell to the lowest since November.
Borrowing costs may continue to fall after Federal Reserve policy makers said Tuesday they anticipate keeping interest rates low until at least mid-2013 to support a growing economy "is much slower''than previous projections. While refinancing has taken, limited employment gains and the value of property fall could withstand a purchase.
The share of applicants seeking to refinance a loan increased to 75.6 percent, its highest level since December, from 70.1 percent the previous week.
Average level of 30-year fixed loan fell to 4.37 percent from 4.45 percent the previous week. Average level of 15-year fixed mortgage was held at 3.52 percent, the report showed.
Recent data indicate that the pipeline in the foreclosure market is still weighed housing recovery. Home values fell the most in 18 months for the year ended May S & P / Case-Shiller index of property values in 20 cities dropped 4.5 percent, the group reported last month. Sales of new homes in the United States also declined in June for the second consecutive month.
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