Mortgage applications inch higher as transactions rise, MBA says

(Sharecast News) - Mortgage applications in the United States edged higher in the seven days to 9 May following a big jump the previous week, according to data out on Wednesday from the Mortgage Bankers Association. The Market Composite Index, which tracks mortgage loan application volumes, rose 1.1% on a seasonally adjusted basis, following an 11% surge in the week ended 2 May,.

Applications for refinancing were little changed, down just 0.4% over the week but 44% higher than a year ago, MBA said.

"Last week saw steadier mortgage rates, as the FOMC meeting played as predicted, and market movements led to a small two-basis point increase in the 30-year conforming rate to 6.86%," said Mike Fratantoni, MBA's senior vice president and chief economist.

"The news for the week was the growth in purchase applications, up 2.3% and almost 18% higher than last year's pace. Despite the economic uncertainty, the increase in home inventory means there are additional properties to buy, unlike the last two years, and this supply is supporting more transactions."