Jobs surge boosts housing market

The 30-year fixed rate mortgage remained under 4 percent

Mortgage applications rose in the past week as the thriving job market is raising confidence and people are looking for homes.

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Demand for applications increased 3.8 percent, according to the Mortgage Bankers Association's Weekly Mortgage Application Survey.

The results for the week ending Nov. 29 included an adjustment due to the Thanksgiving holiday.

The 30-year fixed-rate mortgage rose to 3.98 percent from 3.97 percent.

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"The November jobs data showed increased payroll gains and low unemployment, which means conditions remain favorable for steady purchase growth in the coming months,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting. "The 30-year fixed mortgage rate remained under 4 percent for the fourth straight week, and rates for FHA loans declined close to their lowest level of the year."

The seasonally adjusted purchase index rose 0.4 percent from last week.

The refinancing index increased 9 percent from the previous week and was 146 percent higher than the same week a year ago.

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The refinance share of mortgage activity accounted for 62.4 percent of total applications, rising from 59.0 percent in the prior week.