Mortgage Applications Rise

NEW YORK (Reuters) - U.S. mortgage applications increased for the first time in a month, mostly driven by a robust rebound in home refinancing volume even as interest rates rose, an industry trade group's figures showed Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity for the week ended Dec. 2 increased 5.2 percent to 656.7, up from the previous week's 624.1.

Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.32 percent, up 0.12 of a percentage point from the previous week's 6.20 percent. It was the first increase in three weeks.

The MBA's seasonally adjusted purchase mortgage index increased 4 percent to 495.1 from the previous week's 476.2. The index is considered a timely gauge on U.S. home sales.

The group's seasonally adjusted index of refinancing applications climbed 7 percent to 1,596.4 compared with 1,484.3 the previous week. This was the first increase in the index in seven weeks.