US mortgage applications for home refinancing loans rose for the first time in six weeks, with demand jumping to its highest level since late August as homeowners reacted to record low interest rates, data from an industry group showed on Wednesday.
An increase in home loan refinancing may provide a much-needed jolt to the flailing economy as it could portend an increase in consumer spending. By lowering monthly mortgage payments it may also help some homeowners avoid default and foreclosure if their credit is good enough. The Mortgage Bankers Association on Wednesday said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, for the week ended October 8.