Mortgage Application Volume Rises Last Week

Washington, DC, May 7, 2014 -- Breaking two weeks of declines, mortgage applications increased 5.3% from one week earlier, according to the Mortgage Bankers Association. 

The Market Composite Index increased 5.3% on a seasonally adjusted basis from one week earlier.

The Refinance Index increased 2% from the previous week.  The seasonally adjusted Purchase Index increased 9% to the highest level since January.

"It is official: we are in a majority purchase market for the first time since 2009,” said Mike Fratantoni, MBA’s chief economist.

“A sizeable increase in purchase applications last week likely reflected the impact of somewhat lower mortgage rates as well as continued growth in the job market, as confirmed by Friday’s employment report from the BLS.  Despite the strong increase in the purchase market last week, volume continues to run 16% behind last year's pace."

The refinance share of mortgage activity decreased to 49% of total applications from 50% the previous week.

The average interest rate for 30-year fixed-rate mortgages decreased to 4.43%, the lowest rate since November, from 4.49%.