The Mortgage
Bankers Association (MBA) announced
on Wednesday that the mortgage application volume in the U.S. rose 0.5 per cent
in the week ended May 10, following a 2.6 per cent advance the week before.
According to
the MBA’s data, last week’s increase in mortgage applications reflected a 4.7 per cent jump in mortgage
refinance applications that was partly offset by a 1.7 per cent fall in mortgage applications to purchase a home.
The report also
revealed that the average fixed 30-year mortgage rate declined
from 7.18 per cent to 7.08 per cent, the lowest level since early April. This
was the second straight weekly gain in mortgage interest rates.
Commenting on
the latest survey results, Joel Kan, MBA’s vice president and deputy chief
economist, noted that the U.S. Treasury yields continued to move lower last
week and mortgage rates declined for the second week in a row, leading to a
small boost to refinance applications. “While the downward move in rates benefits prospective homebuyers,
mortgage rates are still much higher than they were a year ago, while for-sale
inventory remains tight,” he added.