Applications for mortgages in the U.S. grows at record high in three months

Applications for U.S. mortgages increased last week as consumers sought to take advantage of lower interest rates in months, data showed on Wednesday the Mortgage Bankers Association.

While applications for refinancing loans carry more weight in the total activity, appetite of orders to buy a home reached its highest since early January.

The general trend in the data of the association, known as the MBA for its acronym in English, is a good omen for the beleaguered U.S. housing market, which has shown other signs of stabilization.

The MBA said its seasonally adjusted index of total mortgage applications, which includes both refinancing and purchases, rose 17.0 percent in the week ended Sept. 4, to 648.3, a record since the week ended May 29.

Cameron Findlay, chief economist at LendingTree.com in Charlotte, North Carolina, said that while the increased demand is positive for the sector still faces many obstacles.

"It's hard to think people will move into the home of your dreams when wages fall and unemployment rises," he said.

Further, as a special tax credit to buy homes due within a few months, and indeed much of the residential home sales are surmounted, the recovery might be hiding some uncertainty over the long term.

"The inventory of existing homes for sale remains high," said Findlay.

Besides, a series of upcoming interest rate adjustments on adjustable rate mortgages could negatively impact the market, he added.

The 30-year mortgage fixed rate, excluding fees, averaged 5.02 percent, down 0.13 percentage points from the previous week, reaching the lowest level since the week ended May 22.

The subindex rose shopping MBA 9.5 percent to 304.1, the highest rise since early April, and this component reached its highest since the week of Jan. 2.

The subscript refinancing rose 22.5 percent to 2651.2, the biggest rise since mid-March, reaching the highest since the week of May 29.