Investing.com - The number of mortgage applications in the U.S. rose last week, despite slightly higher interest rates, industry data showed on Wednesday.
In a report, the Mortgage Bankers Association said their mortgage market index, a measure of mortgage loan application volume, increased by a seasonally adjusted 2.3% in the week ending May 20 to 496.5. That follows a decline of 1.6% to 482.6 in the preceding week.
Mortgage applications to purchase a home drove total volume, rising 5% for the week. Applications to refinance a mortgage were basically flat for the week, up just 0.4%.
"Purchase applications got back on track last week, resuming the level of activity observed throughout most of April and May," said Lynn Fisher, MBA vice president of research and economics.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances inched up to 3.85% from 3.82% in the preceding week.
"The release of the FOMC minutes mid-week led markets to reassess the likelihood of a rate increase this summer, pushing the average 30 year fixed rate up 3 basis points over the week. The overall refinance index held firm, although government refinance applications fell slightly," Fisher said.
The survey covers over 75% of U.S. retail residential mortgage applications, according to MBA.