Loan demand rose last week, surging 11.2 percent, as interest rates eased slightly from their yearly highs, according to the Mortgage Bankers Association’s latest index of mortgage application activity for the week ending Sept. 13. 

The MBA’s mortgage index reflects applications for home purchases and refinancings. Broken out, the refinance index soared nearly 18 percent last week while the purchase index, a gauge for future home buying, rose 3 percent. 

The rebound in mortgage applications follows a recent drop in applications the previous week that had taken loan demand to its lowest point since November 2008. Mortgage applications had fallen 13.5 percent the previous week, as rising interest rates had prompted refinancers and home buyers to take a pause. 

Last week, mortgage rates dropped slightly from their yearly highs. The 30-year fixed-rate mortgage dropped 5 basis points to 4.75 percent, falling from the previous week’s yearly high of 4.8 percent, the MBA reports. 

Source: Reuters