US Mortgage Applications See Significant Weekly Increase

In a notable shift, mortgage applications in the United States surged by 11% in the week ending May 2, as revealed by the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey. This significant uptick reflects changing dynamics in the housing market.

Interest Rates and Market Indices Show Positive Trends

The survey highlighted a decrease in the average contract interest rate for 30-year fixed-rate mortgages, dropping to 6.84% from 6.89% the previous week. Accompanying this, the seasonally adjusted Purchase Index rose to 162.8 from 146.6, and the Refinance Index saw an increase from 649.0 to 721.0. The Market Index also experienced a jump, moving up to 248.4 from 223.7.

Economic Indicators and Mortgage Rates

"Recent economic news, including a negative first-quarter GDP growth reading and signs of contraction in the manufacturing sector, contrasted with a solid April employment report. This mix has led to a mostly downward impact on mortgage rates, bringing them back to early April levels," explained Michael Fratantoni, MBA's SVP and chief economist.