There was renewed action in the US mortgage market last week, figures showed. However, mortgage experts said that it would take far more than Tuesday’s savage interest rate cut by the Federal Reserve to revive the stagnant housing sector.

The Mortgage Bankers Association’s weekly survey released yesterday showed that US home loan applications rose last week, even before the Fed slashed the short-term interest rate by 0.75 per cent to a range of 0 per cent to 0.25%.

The Fed rate sets the interest rate at which banks can borrow.

Spurred on by mortgage interest rates at near-record lows, Americans sent the MBA’s market composite index, which is a measure of mortgage application volumes, up by a seasonally adjusted 2.9%.

The Times