U.S. mortgage applications rise for the second week in a row

According to the latest Mortgage Bankers Association (MBA) data, US mortgage applications printed at a seasonally-adjusted 0.9 percent for the latest week ending September 2nd, following a 2.8 percent gain in the previous week. Mortgage applications rose for the second week in a row, as interest rates dipped slightly.

Applications to refinance a home loan increased 1 percent for the week, while home purchase applications, which are far less rate-sensitive week to week, also rose 1 percent last week. The average benchmark 30-year fixed-rate mortgage rate increased slightly to 3.68 percent in the latest week from 3.67 percent previously.

Lack of affordability in the market and election uncertainty will likely dampening purchasing activity in the near-term. There will also be concerns that any significant increase in interest rates could trigger a sharp decline in re-finance applications, especially at the lower end of the market and there will be high uncertainty ahead of the Federal Reserve meeting later this month.

"Although the pace of job growth slowed in August, purchase volume continues to run strong at 7 percent above last year at this time. This strength is broad based, with growth at both the high and low ends of the market," said Mike Fratantoni, chief economist for the MBA.