Posted By: John Steele

By Julie HavivWed Nov 8, 7:13 AM ET

NEW YORK (Reuters) - U.S. mortgage applications rose
sharply last week, reflecting a surge in home refinancing loans
as interest rates remained near recent lows, an industry trade
group said on Wednesday.
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The Mortgage Bankers Association said its seasonally
adjusted index of mortgage application activity, which includes
both refinancing and purchasing loans, increased 8.8 percent to
620.9 for the week ended November 3 from the previous week's
570.8.

Borrowing costs on 30-year fixed-rate mortgages, excluding
fees, averaged 6.24 percent, unchanged from the previous week,
but well-below a four-year high of 6.86 percent touched in
June. Interest rates were also below year-ago levels of 6.31
percent.

Demand for home purchase loans was also robust.

The MBA's seasonally adjusted purchase index, widely
considered a timely gauge of U.S. home sales, rose 7.1 percent
to 402.2. The index was substantially below its year-ago level
of 465.7.

The group's seasonally adjusted index of refinancing
applications increased 11 percent to 1,897.9. A year earlier
the index stood at 1,798.8.

The refinance share of applications edged up to 46.3
percent from 45 percent the previous week.

Fixed 15-year mortgage rates averaged 5.96 percent, up from
5.94 percent. Rates on one-year adjustable-rate mortgages, or
ARMs, dipped to 5.89 percent from 5.93 percent.

The ARM share of activity increased to 26.4 percent of
total applications from 25.9 percent the previous week.

The MBA's survey covers about 50 percent of all U.S. retail
residential loans. Respondents include mortgage banks,
commercial banks and thrifts.

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