Mortgage applications increased 2.8% from one week earlier as refinancings hit their highest level since November, according to the Mortgage Bankers Association.
The MBA's Weekly Mortgage Applications Survey for the week ending June 9 found that the refinance index increased 9% from the previous week. Last week's results included an adjustment for the Memorial Day holiday.
The seasonally adjusted purchase index decreased 3% from one week earlier, although on an unadjusted basis it increased 19% compared with the previous week and was 8% higher than the same week one year ago.
The refinance share increased to 45.4% of total applications from 42.1% the previous week.
Adjustable-rate loan application activity remained unchanged at 7.4%, while the Federal Housing Administration share increased 6 basis points to 11.2%.
The VA share and USDA share both remained unchanged at 11.1% and 0.8%, respectively.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) decreased 1 basis point to 4.13%. For 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100), the average contract rate decreased 2 basis points to 4.06%.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased 1 basis point to 4%, while for 15-year fixed-rate mortgages, the average decreased 2 basis points to 3.37%.
The average contract interest rate for 5/1 ARMs increased to 3.26% from 3.19%.