Mortgage applications increased 2.9% from one week earlier as interest rates remain at three-year lows, according to data from the Mortgage Bankers Association.
The MBA's Weekly Mortgage Applications Survey for the week ending June 17 found the refinance index rose 7%
At the same time, the seasonally adjusted purchase index decreased 2% from one week earlier.
Rates remained low as bond investors reacted to the Federal Reserve's decision not to raise short-term interest rates in June. These investors are also concerned about Thursday's vote in Great Britain over its continued membership in the European Union, said Keith Gumbinger, vice president of HSH.com.
"Mortgage rates will remain low, regardless of the outcome of the Brexit vote," added Gumbinger in a press release. "The U.S. economic fundamentals haven't changed, and a slow-growth, low-inflation pattern with no signs of action by the Fed should help keep them there well into the summer, if not beyond."
The adjustable-rate mortgage share of activity increased to 5.7% of total applications, while the FHA share of total applications decreased to 11.7% from 11.8%.
The VA share of total applications remained unchanged at 11.1% and the USDA share also remained unchanged at 0.6%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to its lowest level since May 2013, 3.76%, from 3.79%.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to its lowest level since January 2011, 3.7%, from 3.75%.
The average rate for the 30-year backed by the FHA remained unchanged from 3.61%, while for 15-year fixed-rate mortgages, the average decreased 2 basis points to 3.04%.
The average rate for 5/1 ARMs increased to 2.92% from 2.87%.
