U.S. mortgage applications increase as rates remain low

WASHINGTON, March 20 (Xinhua) -- mortgage applications in the United States increased last Week as mortgages rates declined, the mortgage Bankers Association (MBA) said on Wednesday.

For the Week ending March 15, MBA's Market Composite Index, a measure of mortgage loan application volume, rose 1.6 percent from a Week earlier.

"mortgage rates declined once again, as concerns about the slowing global economy and status of Brexit continued to drive investors' demand for U.S. Treasuries, ultimately pushing yields lower," said Joel Kan, associate vice president of economic and industry forecasting at MBA.

Kan said the 30-year fixed mortgage rate dropped to 4.55 percent, which was the lowest reading since last February.

Meanwhile, the Refinance Index increased 4 percent from the previous Week, while the Purchase Index increased 0.3 percent from one Week earlier, according to MBA.

Although lower rates sparked a 3.5-percent increase in refinance applications, purchase activity was up only slightly last Week and from a year ago, said Kan.

MBA also noted that housing market in the United States performed differently according to their price levels.

"Entry-level housing supply remains weak and is likely hindering some would-be first-time buyers from finding a home," said Kan, "this - along with faster growth in the higher price tiers - is why the average loan application size has risen to a new high for three straight Weeks."