Rate Decrease Spurs Rise in Applications

U.S. mortgage applications rose last week by the most in more than three months as mortgage rates fell below 6% for the first time since April, according to an industry report.

The Mortgage Bankers Assn. said its general index of loan demand rose 19.5% to 687, the biggest percentage gain since March 12, from 575. The purchase index jumped 15% to 500.9, close to a record 501.6 in January, from 435.4. The index of mortgage refinancing rose 27.6% to 1769.7, the first increase in three weeks.