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Mortgage applications jump, possibly from fear of a bump in interest rates

Mortgage applications jump, possibly from fear of a bump in interest rates

The fear of rising mortgage interest rates may have nudged people into action on homebuying in November.

Mortgage applications are down 0.7 percent from a week ago, the Mortgage Bankers Association reported Wednesday. But over the last month, mortgage applications for buying new and existing homes jumped 12 percent. The surge came as interest rates on 30-year fixed-rate conventional mortgages shot up to 4.27 percent from 3.77 percent.

"People who were thinking about buying maybe said, 'I'll buy now,'" said Michael Fratantoni, economist for the association. Yet, he said, the recent surge may have also happened partly because mortgage credit has become more available...

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