The number of applications for mortgages to buy homes rose to its highest level in six months last week.

The Mortgage Bankers Association Purchase Index rose 14.4% from a week earlier, the association said. No adjustment was made for Veteran's Day, which occurred in the previous week.

The index is now at it's highest reading since the week ending May 7, 2010.

"The increase in purchase applications last week aligns with other incoming data suggesting that consumers are feeling somewhat more confident with their financial situation," said Michael Fratantoni, the association's vice president of research and economics.

Total mortgage applications rose 2.1% from a week earlier on a seasonally adjusted basis. The Refinance Index dropped 1% from the previous week to its lowest since the end of June.

Refinance applications made up 78.6% of total applications, compared with 80.3% a week earlier.

The average contract interest rate for 30-year fixed-rate mortgages rose to 4.5% from 4.46%.

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Reverse mortgage application and loan documents include many disclosures regarding purchasing insurance products and statements explaining that borrowers are not required to purchase insurance or financial products with reverse mortgages. Unfortunately there are times that borrowers do not have the documents explained to them so these statements could be overlooked.

July 20 2013 at 8:28 AM Report abuse rate up rate down Reply