For the third consecutive week, mortgage applications rose as interest rates dropped, the Mortgage Bankers Association reported Wednesday.
Mortgage applications, reflecting those for refinancing and home purchases, rose 0.9 percent for the week ending May 16. It followed a 3.6 percent gain the previous week.
The rise was led by an increase in refinancing. Applications for refinancing soared 3.8 percent to the highest level since the week ending March 14, the MBA says. On the other hand, applications for home purchases, viewed as a gauge for future home sales, dropped 2.8 percent last week.
The average 30-year fixed-rate mortgage continued to drop, falling to 4.33 percent last week to its lowest level since November. The average on 15-year rate mortgages also dropped, averaging 3.43 percent last week from 3.48 percent, the MBA reports.
Source: “Mortgage Applications in U.S. Rose 0.9% Last Week on Refinancing,” Bloomberg (May 21, 2014)