Mortgage Application Volume Surges Following Memorial Day Week Dip

Mortgage application volume increased a week after Memorial Day behind a surge in both refinance and purchase mortgage activity.

For the week ending June 6, mortgage loan application volume jumped 10.3% from the previous week, according to Mortgage Bankers Association data. The previous week's data included an adjustment due to the Memorial Day holiday.

Both the refinance and purchase indexes surged on a weekly basis, up 11% and 9%, respectively. The refinance share of mortgage activity accounted for 54% of total applications, the Washington-based trade group said.

"The jump in applications shows folks are taking notice of rates near six-month lows," says Bill Banfield, vice president at Quicken Loans. "The jump in purchase applications is especially good to see, as homeowners may finally be getting comfortable putting their home on the market with the level of inventory they see around them."

Meanwhile, interest rates climbed for all types of mortgages.

For example, the average contract interest rate for 30-year fixed-rate mortgages rose eight basis points from the prior week to 4.34%. A 30-year fixed jumbo loan rate increased to 4.27%, from 4.22%. And 30-year mortgages backed by the Federal Housing Administration saw rates go up seven basis points to 4.06%.

Rates on 15-year fixed-rate mortgages were also up this week, to 3.43%, from 3.39%.

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