WASHINGTON, Jan. 29 (Xinhua) -- Mortgage applications increased in the United States as mortgage rate remained low, according to a report from Mortgage Bankers Association (MBA) on Wednesday.

For the week ending January 24, MBA's market composite index, a measure of mortgage loan application volume, increased 7.2 percent from the previous week.

"Mortgage applications continued their strong start to the year, as borrowers acted on the drop in mortgage rates last week. Rates were driven lower by investors' increased concern about the economic impact from China's coronavirus outbreak, in addition to existing concerns over trade and other geopolitical risks," said Joel Kan, associate vice president of economic and industry forecasting of MBA.

Besides, the refinance index, which measures the activity to replace higher rate mortgages with lower rate mortgages, increased 8 percent from the previous week, according to MBA.

"With the 30-year fixed rate at its lowest level since November 2016, refinances jumped 7.5 percent," said Kan.

MBA's purchase index before seasonal adjustment increased 2 percent from the previous week. After removing the influences of predictable seasonal patterns, the seasonally adjusted purchase index increased 5 percent from the previous week, according to MBA.

"Purchase applications grew 2 percent and were 17 percent higher than the same week last year. Thanks to low rates and the healthy job market, purchase activity continues to run stronger than in 2019," Kan added. Enditem

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