After falling 3.3% the previous week, mortgage application volume increased 1.5% on an adjusted basis during the week ended May 31, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
The results include an adjustment for the Memorial Day holiday.
Applications for refinances increased 6%, on lower rates, however, applications for purchases decreased 2%.
On an unadjusted basis, total volume fell 10% compared with the previous week. Applications for purchases decreased 14% on an unadjusted basis but were 0.5% higher compared with the same week one year earlier.
Mortgage rates continued to fall, with the average rate for a 30-year, fixed rate mortgage dropping to 4.23%, down from 4.33%.
The refinance share of mortgage activity increased to 42.2% of total applications, up from 39.7% the previous week.
The adjustable-rate mortgage (ARM) share of activity increased to 7.1% of total applications.
The average rate for a 5/1 ARM, based on closings, was 3.62%, down from 3.74%.