Americans borrowers buying new homes were at its highest pace last week since May, Mortgage Bankers Association report showed on Wednesday.
July pending home sales and August employment surpassed forecasts indicating an increase in home sales.
About 82 percent of last week’s loans were for refinancings rather than purchases as total loan requests dropped by a seasonally adjusted 1.5 percent.
The demand for refinancing fell 3.1 percent from the May 2009 level which was the highest. Purchase applications increased 6.3 percent.
Fixed 30-year mortgage rates stayed barely above the lowest rates since the MBA started tracking rates in 1990, increasing 0.07 percentage point last week to 4.50 percent.
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