Mortgage applications and interest rates both increased during the week ending May 20, according to the Mortgage Bankers Association's weekly survey.
The MBA's Market Composite Index rose 2.3% from the previous week on a seasonally adjusted basis. The component index gauging demand for refinancing edged up 0.4%, while the index measuring applications for loans to purchase homes jumped 5%.
Refinances, as a share of overall mortgage activity, dropped to 53.7% of applications from 54.6%. The share of applications seeking loans guaranteed by the Department of Veterans Affairs also decreased, dropping to 11.5% from 12.1%.
Federal Housing Administration loan applications rose to 12.7% of the total from 12.5%, while the share of adjustable-rate mortgages increased to 5.7%. The U.S. Department of Agriculture loan product's share held steady at 0.7%.
The average contract interest rate for a 30-year fixed-rate mortgage with jumbo loan balances rose eight basis points to 3.82%, and the average rate for 30-year fixed-rate mortgages with balances of $417,000 or less climbed three basis points to 3.85%.
FHA-backed 30-year fixed-rate loans' average rate increased seven basis points to 3.70%. The average for 15-year fixed-rate loans rose four basis points to 3.06%, and the rate for ARMs that have a fixed rate for the first five years and adjust annually thereafter jumped 15 basis points to 3.09%.
