Last week's anemic jobs report for May pushed interest rates lower, but the desire for mortgages was already on the rise.
Mortgage application volume jumped 9.3 percent last week from the previous week, according to the Mortgage Bankers Association. The results were seasonally adjusted, including for the Memorial Day holiday. The volume may have been making up for a big drop two weeks ago, or reacting to a slight drop in interest rates.
Applications to refinance a home loan increased 7 percent, seasonally adjusted, from the previous week, and are nearly 14 percent higher than one year ago. Interest rates were higher at this time last year. Mortgage applications to purchase a home did jump 12 percent for the week, but they are down 19 percent in the past four weeks and down 6 percent from the same week one year ago. Given the high demand for housing, purchase applications should be higher, but a lack of affordable homes for sale is likely keeping volume low.