Mortgage volume finally made a move, jackhammered out of three stagnant weeks by a drop in interest rates.
Total applications increased 4.7 percent on a seasonally adjusted basis for the week ending July 31, versus the previous week, according to the Mortgage Bankers Association (MBA).
Rate-sensitive refinances led the charge, jumping 6 percent for the week. Refinance volume, however, is just 8 percent higher than one year ago. Mortgage applications to purchase a home rose 3 percent for the week but are now 23 percent higher than the same week one year ago.
"Despite recent concerns about the economy, both purchase and refinance applications increased strongly in response to lower interest rates last week. Refinance activity was the highest since May when rates were last at this level," noted Lynn Fisher, MBA's vice president of research and economics. "The increase in purchase activity was also notable for this time of year."