Potential buyers returned to the U.S. housing market last week, mortgage applications climbed , where rates resumed their climb, showed data from an industry group reported Wednesday.
The Mortgage Bankers Association (MBA , for its acronym in English ) said its seasonally adjusted index of mortgage application activity , which includes both refinancing and demand for loans to buy homes rose 0.2 percent in the week ended August 2.
The measurement of loan applications for home purchases , an important indicator of home sales , rose 0.7 percent after falling in four of the last five weeks.
Appetite for mortgages has fallen over the summer , affected by an increase in interest rates due to the Federal Reserve plan to start slow their economic stimulus later this year if the economy moves as expected.
The Fed is currently buying 85,000 million in bonds per month to keep interest rates low .
Cheap mortgage rates have helped boost home purchases and concerns that higher costs may subtract some strength of the housing market recovery have emerged.
The 30-year fixed mortgage rates rose again last week averaging 4.61 percent , 3 basis points higher than the previous week. Rates have risen by more than a percentage point since early May , but still remain low by historical standards.
Increased rates hit demand for refinancing. The refinance index fell 0.1 percent to 2,244.7 and the total share of the total mortgage refinancing activity remained unchanged at 63 percent.
The survey covers over 75 percent of retail residential mortgage applications , according to MBA.