U.S. weekly mortgage applications increase 1.1 percent

The Mortgage Bankers Association (MBA) reported on Wednesday the mortgage application volume in the U.S. increased 1.1 percent in the week ended December 11, following a 1.2 percent drop in the previous week.

According to the report, applications to purchase a home rose 1.8 percent, while refinance applications went up 1.4 percent.

Meanwhile, the average fixed 30-year mortgage rate dropped from 2.90 percent to another - the 15th this year - record low of 2.85 percent.

“U.S. Treasury rates stayed low last week, in part due to uncertainty over the prospects of additional pandemic-related government stimulus, as well as concerns about the continued rise in Covid-19 cases across the country,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting. “Applications to buy a home increased for the fourth time in five weeks, as both conventional and government segments of the market saw gains,” Kan added. “Government purchase applications rose for the sixth straight week to the highest level since June - perhaps a sign that more first-time buyers are entering the market.”