Mortgage Purchase Applications And Refinancing Gains Ground

Purchase applications for home mortgages revived in the May 20 week, increasing by 5 percent from the prior week, while refinancing activity managed to post a gain of 0.4 percent despite slightly higher rates. The average 30-year mortgage for conforming loans ($417,000 or less) was up 3 basis points to 3.85 percent. Purchase applications were 17 percent higher than they were a year ago, an impressive gain that points to continuing strength of a very strong housing market, as seen best in yesterday's new home sales report for April, showing total year-on-year sales up a remarkable 23.8 percent.