Weekly Mortgage Applications See Significant 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 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 to 721.0 from 649.0. The Market Index also experienced a significant jump, moving up to 248.4 from 223.7.

Economic Indicators and Their Impact

"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 led to a mostly downward trend in mortgage rates, reverting to early April levels," explained Michael Fratantoni, MBA's SVP and chief economist.