The Mortgage
Bankers Association (MBA) reported on
Wednesday that the mortgage application volume in the U.S. climbed 1.9 per cent
in the week ended May 17, following a 0.5 per cent rise the week before. This was the third straight weekly advance in
total mortgage application volume.
According to
the MBA’s data, last week’s jump in mortgage applications reflected a 7.4 per cent surge in mortgage
refinance applications that was partly offset by a 1.2 per cent decrease in mortgage applications to purchase a home.
The report also
revealed that the average fixed 30-year mortgage rate fell
from 7.08 per cent to 7.01 per cent, the lowest level since early April. This represented the third straight weekly decline in mortgage interest rates.
Commenting on
the latest survey results, Joel Kan, MBA’s vice president and deputy chief
economist, noted that rates coming down from recent highs spurred some
borrowers to act, with increases across both conventional and government
refinance applications. “VA refinances had a double-digit increase for the
third consecutive week, although the current level of refinancing is still well
below its historical average,” he added.