WASHINGTON–Mortgage applications jumped 9.3% last week over the previous week, according to the Mortgage Bankers Association.
Applications to refinance a home loan increased 7%, seasonally adjusted, from the previous week, and are nearly 14% higher than one year ago, the MBA said. Mortgage applications to purchase a home did jump 12% for the week, but they are down 19% in the past four weeks and down 6% from the same week one year ago, according to the MBA.
The MBA said the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 3.83% from 3.85%, with points decreasing to 0.33 from 0.36 (including the origination fee) for 80% loan-to-value ratio loans, according to the MBA.
"Given the weak employment report for May, we think it is unlikely that the Fed will raise rates in June," said Mike Fratantoni, chief economist of the MBA. "However, as other economic data are pointing to continued economic growth, we do expect that they will increase rates following their July meeting."