Mortgage Applications Rise

Applications for US mortgages, fueled by ongoing increase in activity for government-backed loan programs jumped 5.4 percent in the week ending April 4, according to data released by the Mortgage Bankers Association on Wednesday.

According to the survey, both applications for mortgages to purchase homes and to refinance existing mortgages rose on a week to week basis.

The sub-index of applications for loans backed by government programs such as the FHA and the Veterans Administration continue to see a surge in activity as it jumped by 12.9 percent last week, bringing the measure to 375.2, nearly three times the level of a year ago.

The clamor for the government backed FHA has been fuelled by lenders severely tightening requirements for getting a loan. The government has also broadened the reach of the FHA for homeowners facing foreclosure, and key lawmakers are lobbying to broaden the programs even more.

The Washington based MBA's loan survey which has been published every week since 1990, covers about half of all U.S. retail residential mortgage originations.