Continue Reading Below
The weekly report from the Mortgage Bankers Association was a mixed bag. While purchase applications rose, applications for mortgages and refinancing declined.
“Purchase applications continued their recent ascent, increasing 5 percent last week and 18 percent compared to a year ago," said Joel Kan, MBA’s associate vice president of economic and industry forecasting. "The pent-up demand from homebuyers returning to the market continues to support a recovery from the weekly declines observed earlier this spring.”
Continued high unemployment numbers could eventually have an impact on purchases.
Overall mortgage applications declined 3.9 percent from the prior week, while the refinancing index dropped 9 percent.
“In contrast to the upswing in purchase activity, refinance applications fell for the seventh consecutive week – even as the 30-year fixed rate hit another MBA survey-low of 3.37 percent," added Kan.
This week's figures were adjusted to take into account the Memorial Day holiday.
The survey covers over 75 percent of all U.S. retail residential mortgage applications, and has been conducted weekly since 1990.