Mortgage Application Volume Reverses Downward Trend

After falling throughout May, mortgage application volume rose for the first week of June, according to the ""Mortgage Bankers Association's"":http://mbaa.org/default.htm (MBA) Weekly Mortgage Applications Survey.

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The survey's Market Composite Index, a measure of loan application volume, increased 5.0 percent for the week ending June 7, MBA reported. Unadjusted, the index rose 16 percent. The previous week's results included an adjustment for the Memorial Day holiday.

The Refinance Index was also up 5 percent compared to the previous week, though it was still 11 percent down from its level two weeks prior and 36 percent down from its May peak. The refinance share of mortgage activity was 69 percent, up from 68 percent the previous week.

Meanwhile, the seasonally adjusted Purchase Index increased 5 percent week-over-week. The unadjusted index rose 14 percent and was 6 percent higher than the same week last year.

The increase in application volume came despite continued rises in rates, which analysts say contributed to ""May's downturn"":https://themreport.com/articles/application-volume-stumbles-as-rates-recover-2013-06-05 in applications. The average contract interest rate for a 30-year fixed-rate mortgage was 4.15 percent, the highest rate since March 2012. Points increased to 0.48 from 0.35 (including the origination fee) for 80 percent loan-to-value ratio loans.