Thanks to lower interest rates, mortgage applications increased 4% on a seasonally adjusted basis for the week ending April 29, according to new figures released by the Mortgage Bankers Association.
The slight uptick in business comes with the spring home buying season in full swing with buyers hunting for bargains while lenders continue to keep a tight reign on underwriting standards.
The trade group said refinancings accounted for 62.7% of new business compared to 61.6% the week before. (MBA tracks activity through its proprietary application index.)
Overall, rates on 30-year FRMs dropped for the third consecutive week. At press time, the yield on the benchmark 10-year Treasury was at 3.22%.
MBA reported that the average contract interest rate for 30-year FRMs decreased 4 basis points to 4.76% for the week, the lowest reading since early December.
