Mortgage Applications Up

By Liz Clinger Updated on 6/6/2012

According to an industry trade group, mortgage applications filed by borrowers in the U.S. had an increase of 1.3% for the week ending June 1, over the previous week.

As reported by the Mortgage Bankers Association, the refinance index reached upwards to 2% over the prior week, its biggest percentage since February 10 this year.

Seasonally adjusted purchase index actually reached a decrease in application activity, reaching its lowest level of activity since April 13 of this year.

Refinance activity is still the majority of applications, with 78% of all mortgage applications, a 1% increase over the previous week.

May activity shows around 85% of home purchase applications were 30-year fixed rate, while 7% were 15-year fixed rate and 6% of adjustable rate mortgage loans.

Interest rates also show some fluctuation, with the 30-year fixed rate mortgage average contract rate with a jumbo balance decreased to 4.13% from the previous weeks 4.23%, a record breaking low on the survey. 30-year fixed rate mortgages backed by the FHA showed an average contract interest rate of 3.70%, which is the same from the week prior.