Due in part to increased activity over Memorial Day weekend, which has traditionally been a busy time for home shopping, mortgage application volume increased 5%, on an adjusted basis, for the week ending June 7, compared to the week prior, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.
On an unadjusted basis – in other words, including the full impact from the Memorial Day weekend activity – the Market Composite Index, a measure of mortgage loan application volume, increased 16% compared to the previous week, according to the report.
In addition, the Refinance Index, a measure of refinance volume, increased 5% from the previous week, indicating that homeowners were still looking to take advantage of lower rates, despite the fact that they had crept up in previous weeks.
Despite the increase in the Refinance Index last week, the level is still 11% lower than two weeks prior and 36% lower than the recent peak at the beginning of May, the MBA reports.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) increased to 4.15%, the highest rate since March 2012, while the average for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) increased to 4.25%, the highest rate since May 2012.
For more highlights from the report, click here.