The Mortgage Bankers Association's Weekly Mortgage Applications Survey for the week ending May 23 indicates home loan requests increased 3.8 percent – the second straight week of a marked rise in activity.
The Refinance Index led the way, as it hiked 5.6 percent from the previous week. This is the third consecutive weekly increase for the index.
Michael Fratantoni, MBA's vice president of research and economics, said refinancing continues to play a big part in application activity.
“Mortgage rates again dipped to new record lows in the survey, which spurred more borrowers back into the refinance market," he said. "As a result, applications for refinance loans have increased for the third straight week and are at the highest level since February of this year."
During relatively the same period as the MBA's latest report, mortgage rates dropped to 3.78 percent for a 30-year fixed-rate mortgage and 3.04 percent for a 15-year fixed-rate mortgage.
As home prices remain low and foreclosures continue to play a role in the market, the mortgage applications increase provides a bright spot for the market. A greater number of Americans are increasing their credit scores and annual incomes. Further, unemployment rates are steadily decreasing adding to consumer's purchasing power.
