US MBA mortgage applications w.e. 10 January +33.3% vs -3.7% prior

• Prior -3.7%
• Market index 224.4 vs 168.4 prior
• Purchase index 162.0 vs 127.7 prior
• Refinance index 575.6 vs 401.1 prior
• 30-year mortgage rate 7.09% vs 6.99% prior

After the holiday down time, US mortgage applications picked back up strongly in the past week amid a resurgence in both purchases and refinancing activity. That despite the interest rate for the most popular US home loan rising above 7% to its highest since May last year. It’s the fifth consecutive weekly jump for the main rate, reflecting a move in the opposite direction of the Fed’s policy rate. And that’s not too optimistic for the mortgage market if conditions continue to stay this way.

This article was written by Justin Low at www.forexlive.com.