Bloomberg.

JOHANNESBURG. South African inflation accelerated to more than 9 percent in February for the first time in almost five years, adding to pressure on the central bank to raise interest rates.

The CPIX inflation rate, which excludes mortgage costs, rose to 9,4 percent from 8,8 percent in January, Pretoria-based Statistics South Africa said yesterday. That was in line with the median estimate of 12 economists surveyed by Bloomberg. Prices increased 0,4 percent in the month.

The Reserve Bank is struggling to bring inflation back within the 3 percent to 6 percent target range, even after raising interest rates four times last year.

The rand's 15 percent drop against the dollar this year and higher electricity tariffs are adding to price pressures, increasing speculation the central bank will resume raising its benchmark interest rate next month, after leaving it unchanged at 11 percent on January 31.

Prosecutors indict 19 in mortgage fraud scheme

SACRAMENTO - Federal prosecutors on Monday announced indictments in a mortgage scheme that victimized more than 100 homeowners and siphoned off nearly $13 million in home equity.

Dozens of people in California and elsewhere lost their homes in the scam, which prosecutors say was led by Charles Head of La Habra. He and 18 others face allegations that they preyed on homeowners who were struggling to make payments on adjustable-rate and other mortgages.

Under the scam, homeowners facing foreclosure were promised lower house payments and even cash upfront to help pay bills if they agreed to add another name to their home's title. The victims were led to believe they were paying rent to the investor while they got their finances back in order.

According to the unsealed indictments, Head and the others actually used the scheme to switch the names on the titles, take control of the homes, refinance them and walk away with whatever equity homeowners had built up.

Mortgage applications spike after Fed action

U.S. mortgage applications jumped by nearly 50 percent last week as home loan rates fell after the Federal Reserve cut interest rates and took steps to restore bond market confidence, an industry trade group said on Wednesday.

The Mortgage Bankers Association's mortgage applications index jumped 48.1 percent to a seasonally adjusted 965.9 in the week ended March 21, its highest level since early February.

An 82 percent surge in refinancing applications overshadowed a 10.6 percent rise in home purchase loan requests, lifting total applications from the previous week, when home loan demand sank to the lowest since end-December.

"The Federal Reserve acted last week to bring some stability to the mortgage-backed securities market and we saw an immediate impact with a drop in mortgage rates," Jay Brinkmann, the MBA's vice president of research and economics, said in a release.