Mortgage applications to purchase a home drove total volume, rising 5 percent for the week, seasonally adjusted, and 17 percent compared with the same week one year ago. Purchase volume had been weakening, despite the fact that spring is historically the busiest season for homebuying.
"Purchase applications got back on track last week, resuming the level of activity observed throughout most of April and May," said Lynn Fisher, MBA vice president of research and economics.
Applications to refinance a mortgage were basically flat for the week, up just 0.4 percent. These are more interest-rate sensitive, and rates have moved off the three-year lows of a few weeks ago.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to 3.85 percent from 3.82 percent, with points increasing to 0.37 from 0.34 (including the origination fee) for 80 percent loan-to-value ratio loans, according to the MBA's weekly survey.