U.S. mortgage applications hit highest levels in more than two years

U.S. mortgage applications grew to their highest level in more than two years. This was spurred-on by a jump in refinancing activity, as some home borrowing costs declined to their lowest levels in more than a year, the Mortgage Bankers Association said on Wednesday.

The association's index on requests for loans to buy a home or refinance a mortgage increased 18.6% to 503.6 in the week ended March 29. This was the strongest reading since 512.9 in the week of Oct. 14, 2016. Interest rates on 30-year “conforming” mortgages, or home loans with balances of $484,350 or less, averaged 4.36%, the lowest since the week of Jan. 19, 2018. They were 4.45% a week earlier. 

“There was a tremendous surge in overall application activity, as mortgage rates fell for the fourth week in a row,” Joel Kan, MBA’s associate vice president of economic and industry forecasting, said in a statement.

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