Weekly Mortgage Applications See Significant Rise

In a notable shift, mortgage applications in the United States surged by 11% in the week ending May 2, as reported by the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.

Interest Rates and Indexes Show Positive Trends

The survey highlighted a decrease in the average contract interest rate for 30-year fixed-rate mortgages 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 jump, reaching 248.4 from 223.7.

Economic Indicators and Mortgage Rates

"The economic news last week included a negative reading for first-quarter GDP growth and further signs of contraction in the manufacturing sector, mixed with a solid employment report for April. The net impact on mortgage rates was mostly downward but just back to levels from early April," explained Michael Fratantoni, MBA's SVP and chief economist.