A sharp drop in mortgage rates was enough to spark a refinance rebound, but it did little to spur homebuyers in a spring market plagued by very tight supply.
Total mortgage application volume rose 2.7 percent last week on a seasonally adjusted basis from the previous week, according to the Mortgage Bankers Association. Volume is now just over 3 percent higher than one year ago.
Refinance volume jumped 7 percent week to week, although it is still down nearly 2 percent from a year ago. Higher rates stalled the refinance market, as so many borrowers had already locked in far-lower rates last year. The refinance share of mortgage activity increased to 54.5 percent of total applications from 52.4 percent the previous week.