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, according to the latest Weekly Mortgage Applications Survey released by the Mortgage Bankers Association (MBA) on Wednesday.

Interest Rates and Indexes Show Positive Movements

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 increased to 721.0 from 649.0. The Market Index also experienced a significant jump, reaching 248.4 from 223.7.

Economic Indicators and Mortgage Rates

"The economic news last week was mixed, with a negative reading for first-quarter GDP growth and signs of contraction in the manufacturing sector, contrasted by a solid employment report for April. This combination 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.