WASHINGTON, March 28 (Xinhua) -- Mortgage applications in the United States rose last week as mortgage rates remained at a low level, Mortgage Bankers Association (MBA) said on Wednesday.
For the week ending March 22, MBA's market composite index, a measure of mortgage loan application volume, rose 8.9 percent from a week earlier.
"The spring buying season is off to a strong start. Thanks to an unexpectedly large drop in mortgage rates following last week's FOMC meeting, purchase applications jumped 6 percent and refinance applications surged over 12 percent," said Joel Kan, associate vice president of economic and industry forecasting at MBA.
FOMC, or Federal Open Market Committee, is the policymaking unit for open market operations under the U.S. Federal Reserve (Fed). The Fed kept its short term interest rate flat on March 20, easing the upward pressure on mortgage rates.
"The average loan size increased once again to new highs for both purchase and refinance loans, as borrowers with or seeking larger loans tend to be more reactive to the drop in rates," Kan added.
The 30-year fixed-rate mortgage is now more than 70 basis points below last November's peak, according to Kan.
Meanwhile, the central bank of the United States intended to slow the reduction of its holdings of Treasury securities beginning in May, signaling less tightness in the future financial market.
