Mortgage applications increased 3.8% from a week ago, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending May 18.
The Market Composite Index, a measure of mortgage loan application volume, increased 3.8% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 3.3% compared with the previous week.
Also , the Refinance Index increased 5.6% from the previous week. This is the third consecutive weekly increase in the Refinance Index, which the MBA says is at its highest level since February 10.
The seasonally adjusted Purchase Index decreased 3% from a week ago to its lowest level since April 20. The unadjusted Purchase Index decreased 3.6% compared with the previous week and was 4.2% lower than the same week one year ago.
‘Mortgage rates again dipped to new record lows in the survey, which spurred more borrowers back into the refinance market,’ explains Michael Fratantoni, MBA's vice president of research and economics. ‘As a result, applications for refinance loans have increased for the third straight week and are at the highest level since February of this year.’