Mortgage purchase demand rises

NEW YORK: Purchase applications for home mortgages rebounded last week, but demand for refinancing sagged for a second week in a row, an industry group said on Wednesday.The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which included both refinancing and home purchase demand, slipped 1.2 per cent in the week ended November 18, after a 10 per cent drop the week before, Reuters reported on Wednesday.The gauge of loan requests for home purchases provided a bright spot, rising by 8.2 per cent. Even so, purchase activity remained almost five per cent below last years level, Michael Fratantoni, MBAs vice president of research and economics, said in a statement.The index of refinancing applications fell by 4.0 per cent and the refinance share of total mortgage activity dropped to 75.9 per cent of applications from 77.3 per cent. It was the lowest level since September.Fixed 30-year mortgage rates were unchanged at an average 4.23 per cent.The survey covers over 75 per cent of US retail residential mortgage applications, according to MBA.Chinese manufacturing output hits a 32-month lowChinas manufacturing activity fell to its lowest level in 32 months in November, according to the HSBC bank purchasing managers index.The news renewed fears that the economic powerhouse is losing steam, and contributed to two per cent fell on the Hong Kong and Sydney stock markets.Chinas PMI, a measure of the goods and services companies buy each month, fell to 48 from 51 in October.An index reading under 50 indicated economic contraction.China is the worlds second-largest economy. "Though a less-than-50 figure was expected, it suggested that China is no exception and is being hit by the euro crisis and global uncertainty," said Conita Hung, an analyst at Delta Asia Financial Group.The figure is a preliminary indicator and the final fixed figure will be released on 1 December.
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